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LIBRARY 
OF  THE 

FOR 

22  WH'*3 


GAS  CORPORATIONS 


PRESCRIBED  BY  THE 


RAILROAD  COMMISSION 


OF  THE 


STATE  OF  CALIFORNIA 


Adopted  October  23,  1912  Effective  January  1,  1913 


SAN  FRANCISCO,  CALIFORNIA 


UNIFORM  CLASSIFICATION  OF  ACCOUNTS 


FOR 

GAS  CORPORATIONS 


PRESCRIBED  BY  THE 


RAILROAD  COMMISSION 


OF  THE 

% 

STATE  OF  CALIFORNIA 


Adopted  October  23,  1912.  Effective  January  1,  1913 


SAN  FRANCISCO,  CALIFORNIA 


Friend  Wm.  Richardson,  Superintendent  of  State  Printing 

SACRAMENTO,  CALIFORNIA 

1912 


RAILROAD  COMMISSION  Of  CAUfORNIA. 

John  M.  Eshleman,  President Commissioner 

H.  D.  Loveland Commissioner 

Alexander  Gordon Commissioner 

Edwin  O.  Edgerton Commissioner 

Max  Thelen,  Attorney Commissioner 

Charles  R.  Detrick,  Secretary. 


P^MOTHP 


(prrp 


J-  dVW  o q 

B 

UNIFORM  CLASSIFICATION  OF  ACCOUNTS  FOR 
GAS  CORPORATIONS. 


Approved  October  23,  1912. 


To  All  Gas  Corporations: 

This  uniform  system  of  accounts  for  gas  corporations  is  established 
and  issued  by  the  Railroad  Commission  of  the. State  of  California  in 
accordance  with  provisions  of  section  48  of  law  of  1911,  known  as  the 
“Public  Utilities  Act,”  in  effect  March  23,  1912. 

Section  48.  “The  Commission  shall  have  power  to  establish  a system 
of  accounts  to  be  kept  by  the  public  utilities  subject  to  its  jurisdiction, 
or  to  classify  said  public  utilities  and  to  establish  a system  of  accounts 
for  each  class,  and  to  prescribe  the  manner  in  which  such  accounts  shall 
be  kept.  It  may  also  in  its  discretion  prescribe  the  forms  of  accounts, 
records  and  memoranda  to  be  kept  by  such  public  utilities,  including 
the  accounts,  records  and  memoranda  of  the  movement  of  traffic  as  well 
as  the  receipts  and  expenditures  of  moneys,  and  any  other  forms, 
records  and  memoranda  which  in  the  judgment  of  the  Commission  may 
be  necessary  to  carry  out  any  of  the  provisions  of  this  act.  The  system 
of  accounts  established  by  the  Commission  and  the  forms  of  accounts, 
records  and  memoranda  prescribed  by  it  shall  not  be  inconsistent,  in 
the  case  of  corporations  subject  to  the  provisions  of  the  act  of  congress 
entitled  ‘An  act  to  regulate  commerce,'  approved  February  fourth, 
eighteen  hundred  and  eighty-seven,  and  the  acts  amendatory  thereof 
and  supplementary  thereto,  with  the  systems  and  forms  from  time  to 
time  established  for  such  corporations  by  the  Interstate  Commerce  Com- 
mission, but  nothing  herein  contained  shall  affect  the  power  of  the 
Commission  to  prescribe  forms  of  accounts,  records  and  memoranda 
covering  information  in  addition  to  that  required  by  the  Interstate 
Commerce  Commission.  The  Commission  may,  after  hearing  had  upon 
its  own  motion  or  upon  complaint,  prescribe  by  order  the  accounts  in 
which  particular  outlays  and  receipts  shall  be  entered,  charged  or 
credited.  Where  the  Commission  has  prescribed  the  forms  of  accounts, 
records  or  memoranda  to  be  kept  by  any  public  utility  for  any  of  its 
business,  it  shall  thereafter  be  unlawful  for  such  public  utility  to  keep 
any  accounts,  records  or  memoranda  for  such  business  other  than  those 
so  prescribed,  or  those  prescribed  by  or  under  the  authority  of  any  other 
state  or  of  the  United  States,  excepting  such  accounts,  records  or  memo- 
randa as  shall  be  explanatory  of  and  supplemental  to  the  accounts, 
records  or  memoranda  prescribed  by  the  Commission.” 

Section  1.  (p)  The  term  ‘Gas  corporation,'  when  used  in  this  act 

includes  every  corporation  or  person,  their  lessees,  trustees,  receivers 
or  trustees  appointed  by  any  court  whatsoever,  owning,  controlling 


4 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


operating  or  managing  any  gas  plant  for  compensation  within  this 
State,  except  where  gas  is  made  or  produced  on  and  distributed  by  the 
maker  or  producer  through  private  property  alone,  solely  for  his  own 
use  or  for  the  use  of  his  tenants,  and  not  for  sale  to  others.” 

For  the  purpose  of  this  system  of  accounts,  gas  corporations  are 
divided  into  three  classes  as  follows: 

Class  A— Corporations  having  average  annual  operating  reve- 
nues exceeding  $100,000. 

Class  B — Corporations  having  average  annual  operating  reve- 
nues less  than  $100,000,  and  more  than  $25,000. 

Class  C — Corporations  having  average  annual  operating  reve- 
nues less  than  $25,000. 

Any  corporation  in  classes  B and  C may  keep  a more  extended 
division  or  subdivision  of  any  or  all  the  accounts  shown  herein;  if 
desired,  further  refinements  or  extensions  of  the  scheme  of  accounts  to 
meet  the  needs  of  individual  corporations  may  be  made  by  subdividing 
the  accounts  herein  established,  provided  that  the  integrity  of  the 
accounts  is  not  impaired  and  that  the  titles  and  purposes  of  any  accounts 
so  raised  shall  "first  he  filed  with  the  Railroad  Commission. 

All  accounts  shall  be  kept  by  the  double-entry  method  by  all  corpora- 
tions or  persons  within  the  scope  of  this  order.  This  requirement, 
however,  is  not  intended  to  apply  to  purely  statistical  accounts. 

The  first  entry  relating  to  anything  for  which  a charge  or  a credit 
is  made  to  any  fixed  capital  or  investment  account  shall  describe  the 
property  in  respect  of  which  the  entry  is  made  with  such  fullness  and 

particularity  as  to  enable  its  identification. 

All  charges  made  to  fixed  capital  or  other  property  account  with 
respect  to  any  property  acquired  on  or  after  January  1,  1913.  shall  be 
the  actual  money  costs  of  the  property:  When  the  consideration  giveh 
and  for  which  a charge  is  made  to  any  fixed  capital  or  other  property 
account  is  anything  other  than  money,  the  actual  consideration  shall  b; 
fully  described  in  the  entry,  to  enable  identification,  and  the  amoun 
charged  shall  be  the  actual  money  value  of  the  consideration  at  the  tim< 
of  the  transaction. 

Discounts  upon  securities  and  other  commercial  papers  issued  are  t 
be  provided  for  in  other  accounts  and  must  in  no  case  be  included  a 

part  of  the  cost  of  any  property  acquired. 

The  figures  and  letters  prefixed  to  the  titles  of  accounts  in  the  f ollov 
ing  definitions  and  instructions  are  solely  for  convenience  of  reference 
and  are  not  to  be  considered  as  part  of  the  title  or  definition. 

All  corporations  are  hereby  required  on  and  after  January  1,  191. 
to  keep  their  accounts  in  accordance  with  classifications  herein  pro\  ide< 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


5 


All  corporations  operating  in  more  than  one  incorporated  city  or 
partly  within  and  partly  without  an  incorporated  city,  shall  show 
separate  income  account  for  each  incorporated  city,  and  a single  income 
account  for  all  territory  not  within  an  incorporated  city. 

All  general  expense  common  to  the  entire  system,  together  with  the 
expenses  and  repairs  of  the  production,  transmission  and  distribution 
systems,  shall  be  treated  as  common  to  the  entire  system  and  pro-rated 
to  the  several  incorporated  cities  or  other  territory  on  some  equitable 
basis  in  accordance  with  the  benefits  derived. 

Note. — Corporations  will  file  with  the  Commission  a statement  in  complete  detail 
and  full  explanation  supporting  the  basis  on  which  a pro-rate  of  expenses  is  made. 

In  prescribing  this  system  of  accounts,  the  Commission  does  not  bind 
itself  to  approve  any  item  set  out  in  any  account,  either  as  to  amount 
or  character,  for  rate  fixing  purposes  or  when  authorizing  the  issuance 
of  securities.  The  prescribed  system  of  accounts  is  designed  to  set  out 
the  facts  in  connection  with  the  income,  expenditures,  etc.,  and  there- 
from the  Commission  will  determine,  when  engaged  in  fixing  rates  or 
approving  issues  of  securities,  just  what  consideration  shall  be  given  to 
the  various  items  in  the  several  accounts. 

RAILROAD  COMMISSION  OF  THE  STATE 
OF  CALIFORNIA. 

By  Charles  R.  Detrick, 

Secretary. 

Dated : October  24,  1912. 

Commercial  Building, 

San  Francisco,  California. 


6 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


BALANCE  SHEET  ACCOUNTS. 

Definitions  and  Instructions. 

Balance  Sheet  Accounts  defined . By  Balance  Sheet  Accounts  are 
meant  those  titles  under  which  the  ledger  accounts  are  combined  and 
summarized  to  show  the  assets,  liabilities,  and  profit  or  loss  of  the 
business  at  a given  time.  Where  the  title  and  definition  of  a Balance 
Sheet  Account  clearly  indicate  that  it  is  a summary  of  other  accounts, 
it  is  not  required  that  a special  ledger  account  shall  be  raised  under 
such  a title  to  include  the  balance,  from  the  accounts  usually  carried  on 
the  ledger. 

Assets.  The  term  “assets”  is  an  accepted  designation  of  the  wealth 
or  money’s  worth,  either  actual  or  nominal,  in  the  possession  or  control, 
or  at  the  disposal  of  individuals,  firms,  corporations,  or  governments, 
when  that  wealth  or  money’s  worth  is  considered  as  resources  for  satis- 
fying the  obligation  of  debtors  to  creditors,  and  those  of  trustees  to 
their  principals;  and  as  a basis  of  the  property  rights  of  owners  or 
stockholders,  or  as  resources  classified  according  to  their  character,  their 
relation  to  the  principal  purpose  of  the  business  or  enterprise  in  which 
they  are  utilized,  their  form,  or  the  time  when  and  conditions  under 
which  they  become  owned  or  controlled  by  or  at  the  disposal  of  the 
individual,  firm,  corporation  or  government  utilizing  or  disposing  of 
them. 

Corporate  deficit  is  the  excess  of  the  expense  and  deductions  over 
revenue  or  income,  and  represents  the  amount  due  to  the  corporation 
by  its  proprietors,  or  proprietary  interests,  for  the  replacement  of  lost 
invested  capital. 

Liabilities.  The  term  “liabilities”  are  primarily  amounts  of  money 
or  quantities  of  other  specified  forms  of  wealth  which  persons,  firms,; 
corporations,  or  governments  are  under  obligation  to  pay  or  deliver,  or 
for  whose  custody,  use,  payment,  or  expenditure  they  are  responsible, 
or  amounts  representing  losses  or  depreciation  of  assets  incurred  but 
not  realized. 

Corporate  surplus  is  the  excess  of  revenue  or  income  over  expenses, 
and  deductions,  or  portions  of  the  property  rights  or  equity  of  the 
proprietors. 

ASSET  ACCOUNTS. 

1.  Fixed  Capital  Installed  Prior  to  January  1,  1913: 

In  this  account  (on  the  balance  sheet  statement)  shall  be  shown  the 
total  of  the  balance  in  the  ledger  accounts  representing  the  corpora-  * 
tion’s  fixed  capital  which  was  installed  prior  to  January  1,  1913,  and 
which  is  still  in  service  at  date  of  the  balance  sheet.  (See  text  of  this 
account  under  Account  C-39,  “Fixed  Capital  Accounts.”) 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


7 


2.  Fixed  Capital  Installed  Since  December  31,  1912: 

This  account  is  a summary  of  the  accounts  representing  the  corpora- 
tion’s fixed  capital  installed  since  December  31,  1912,  and  should  show 
the  cost  of  the  fixed  capital  which  has  been  installed  since  that  date 
and  is  still  in  service  at  the  date  of  the  balance  sheet.  (For  primary 
fixed  capital  accounts  see  Accounts  C-l  to  C-4,  “Intangible  Capital,” 
and  Accounts  C-5  to  C-40,  “Tangible  Capital  Accounts.”) 

3.  Cash  and  Deposits: 

A.  Cash.  Charge  to  this  account  the  amount  of  current  funds  avail- 
able for  use  on  demand  in  the  hands  of  financial  officers  and  agents, 
or  deposited  in  banks  or  with  trust  companies,  and  cash  in  transit  for 
which  agents  receive  current  credit. 

B.  Special  Deposits.  Charge  to  this  account  special  deposits  to  pay 
declared  dividends  or  matured  interest,  cash  realized  from  the  sale  of 
securities  held  for  disbursements  when  the  purposes  for  which  the 
securities  are  sold  are  accomplished;  special  deposits  other  than  in 
sinking  funds  for  the  payment  of  debts  and  interest,  not  matured; 
also  money  and  securities  deposited  to  secure  the  performance  of 
contracts,  and  other  deposits  of  a special  nature  not  provided  for 
elsewhere. 

4.  Notes  Receivable: 

Charge  to  this  account  the  cost  of  all  collectible  obligations  in  the 
form  of  notes  receivable  or  other  similar  evidences  of  money  receivable 
on  demand  or  within  a time  not  exceeding  one  year.  This  does  not 
include  interest  coupons.  Time  loans  that  mature  more  than  one  year 
after  date  of  issue  shall  be  considered  as  investments  and  shall  not  be 
included  in  this  account. 

5.  Accounts  Receivable: 

Include  in  this  account  all  amounts  owing  to  the  corporation  upon 
accounts  with  solvent  concerns  other  than  banks,  also  the  cost  of  all 
accounts  and  claims  (except  notes  or  negotiable  bills)  upon  which 
responsibility  is  acknowledged  by  solvent  concerns  or  which  are  suffi- 
ciently secured  to  be  considered  good,  and  of  all  judgments  against 
solvent  concerns  where  the  judgment  is  not  appealable  or  suspended 
through  appeal. 

The  following  sub-accounts  are  provided : 

A.  Accounts  with  System  Corporations.  Charge  to  this  account 
amounts  due  from  proprietary,  affiliated,  controlled,  and  controlling 
corporations  on  open  accounts  other  than  those  provided  for  in  Account 
No.  8-B,  “Advances  to  System  Corporations  for  Construction,  Equip- 
ment and  Betterments.” 


8 


CLASSIFICATION"  OF  ACCOUNTS,  GAS  CORPORATIONS. 


B.  Due  from,  Consumers  and  Agents.  Charge  to  this  account 
amounts  due  from  consumers  and  agents  for  services  rendered  or  billed. 

Note. — Accounts  with  consumers  and  agents  shall  be  kept  in  such  manner  as  will 
enable  corporations  to  show  amounts  due  from  consumers  and  agents  for  current 
accounts,  for  delinquent  accounts,  and  amounts  due  from  consumers  whose  service 
has  been  suspended. 

C.  Miscellaneous  Accounts  Receivable.  Charge  to  this  account 
amounts  due  from  employees  for  working  funds  advanced,  and  amounts 
due  from  miscellaneous  debtors  upon  open  accounts  considered 
collectible. 

6.  Interest  and  Dividends  Receivable: 

Charge  to  this  account  all  interest  considered  collectible  accrued  but 
not  yet  collected  upon  bonds,  notes  or  other  commercial  paper,  held  by 
or  for  the  benefit  of  the  corporation;  all  dividends  declared  or  guar- 
anteed by  solvent  concerns  but  not  yet  collected,  the  right  to  which  is 
in  the  corporation. 

7.  Other  Current  Assets: 

Charge  to  this  account  the  cost  of  all  current  assets  which  are  not 
includible  under  any  of  the  foregoing  accounts.  By  current  assets 
are  meant  only  those  things  that  are  readily  convertible  into  money 
and  which  are  held  not  as  investments,  but  with  the  intent  of  being 
presently  converted  into  money. 

8.  Investments: 

This  account  includes  the  cost  of  all  properties  acquired  or  held  not 
for  use  in  present  operations,  but  as  a means  of  obtaining  and  exer- 
cising control  over  other  corporations,  or  for  income  to  be  derived  from 
them,  or  for  a rise  in  value,  or  for  devotion  to  future  operations,  and 
for  securing  other  business  advantages  that  may  seem  possible  through 
their  acquisition  and  possession. 

It  is  subdivided  as  follows : 

A.  Securities  of  Other  Corporations.  Charge  to  this  account  the  cost 
of  stocks  and  bonds  and  other  evidence  of  indebtedness  issued  by  other 
companies.  This  account  does  not  include  any  stocks,  bonds,  or  other 
evidence  of  indebtedness  issued  or  assumed  by  the  accounting  corpora- 
tion. Class  A and  Class  B corporations  will  subdivide  this  account  so 
as  to  show  separately  the  cost  of 

a.  Stocks  of  System  Corporations. 

b.  Funded  Debt  of  System  Corporations. 

c.  Miscellaneous  Stocks. 

d.  Miscellaneous  Bonds. 

Note. — In  the  annual  reports  to  the  Railroad  Commission,  investments  will  be 
required  to  be  classified  so  as  to  show  those  held  subject  to  a lien  of  some  character 
and  those  held  free  of  all  lien  or  pledge. 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


9 


B.  Advances  to  System  Corporations  for  Construction,  Equipment 
and  Betterments.  Charge  to  this  account  advances  to  proprietary, 
affiliated,  controlled  and  controlling  corporations  to  enable  such  corpor-. 
ations  to  pay  for  construction,  equipment,  additions,  and  betterments, 
when  such  advances  are  of  a permanent  nature  ( i . e.,  where  there  is  not 
an  understanding  that  the  advances  are  to  be  repaid  within  one  year)  or 
when  it  is  understood  and  intended  that  reimbursement  shall  be  made  by 
the  issue  of  the  securities  of  the  debtor  corporation. 

Note. — Temporary  advances  on  open  accounts  to  system  corporations  and  such 
advances  for  purposes  other  than  construction,  equipment,  additions  and  betterments 
shall  be  included  in  accounts  receivable. 

C.  Miscellaneous  Investments.  Charge  to  this  account  all  other  in- 
vestments of  a permanent  nature  in  tangible  and  in  physical  property 
not  held  for  the  operation  of  the  company’s  plant  as  a gas  system. 

Note. — In  the  annual  reports  to  the  Railroad  Commission,  investments  will  be 
required  to  be  classified  so  as  to  show  those  held  subject  to  a lien  of  some  character 
and  those  held  free  of  all  lien  or  pledge. 

9.  Materials  and  Supplies  : 

Charge  to  this  account  the  cost  (including  transportation)  of  all 
materials  and  supplies  acquired,  and  the  value  of  discarded  equipment 
and  of  equipment,  materials,  and  supplies  returned  to  store,  regardless 
of  whether  the  same  are  intended  to  be  consumed  in  construction  or  in 
operation,  or  later  to  be  sold.  Where  discounts  recovered  through 
prompt  payment  are  not  credited  to  the  particular  bills,  the  cost  at 
which  such  materials  and  supplies  shall  be  charged  shall  be  the  invoice 
cost,  and  any  discounts  recovered  through  prompt  payment  of  bills  for 
such  materials  and  supplies  shall  be  credited  to  Account  No.  C-36, 
“Interest  During  Construction,”  or  to  Account  No.  E-75,  “Undis- 
tributed Adjustments — Balance,”  according  as  such  materials  and  sup- 
plies are  intended  for  construction  or  for  operation. 

When  the  use  of  any  tangible  fixed  capital  is  discontinued  it  shall  be 
treated  as  retired ; the  original  cost  of  such  capital  shall  be  credited  to 
the  fixed  capital  account  in  which  carried,  and  its  value,  if  any,  as 
second-hand  material  or  junk  shall  be  charged  to  this  account,  or  an 
appropriate  sub-account.  If  such  value  is  not  known  and  cannot 
readily  be  determined,  it  shall  be  estimated,  and  errors  in  such  esti- 
mates, when  determined,  shall  be  adjusted  through  the  accounts  in- 
volved during  the  year  in  which  the  estimates  were  made ; if  later,  then 
through  the  “Corporate  Surplus  or  Deficit”  account. 

Inventories  of  materials  and  supplies  shall  be  taken  at  least  annually, 
and  any  shortages  or  overages  disclosed  by  such  inventories  shall  be 
credited  or  debited  to  this  account  and  debited  or  credited  to  Account 
No.  E-75,  “Undistributed  Adjustments — Balance,”  or  to  Account  No.  4, 
“Supply  Expense”  (if  that  account  is  used),  in  case  such  shortages  or 
overages  cannot  be  assigned  to  specific  accounts.  Shortages  may,  how- 

2— G 


10  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

ever,  be  charged  directly  to  “ Corporate  Surplus  or  Deficit.’ ’ Where 
materials  and  supplies  from  stores  have  been  used  in  construction,  and 
if  is  estimated  that  part  of  the  shortage  or  overage  is  due  to  such 
materials  and  supplies  having  been  actually  applied  to  construction,  a 
proper  proportion  of  the  inventory  shortage  or  overage  should  be 
charged  or  credited  to  Account  No.  C-35-E,  “Miscellaneous  Construc- 
tion Expenses,”  directly  or  through  Account  No.  4,  “Supply  Expense.” 

10.  Sinking  Funds: 

Charge  to  this  account  the  amount  of  cash  and  the  cost  of  live  securi- 
ties in  the  hands  of  trustees  of  sinking  and  other  funds  for  the  purpose 
of  redeeming  outstanding  obligations,  also  amounts  deposited  with  such’ 
trustees  on  account  of  mortgaged  property  sold.  A separate  account 
shall  be  raised  for  each  sinking  fund.  When  any  security  of  the  same 
issue  as  that  for  which  a sinking  fund  is  created  is  acquired  through 
the  operation  of  the  sinking  fund,  the  par  value  of  the  security  shall  be 
charged  to  the  liability  account  to  which  it  stands  credited  and  not  to 
the  sinking  fund  account. 

11.  Other  Special  Funds  : 

Charge  to  this  account  the  amount  of  cash  and  the  cost  of  securities 
held  in  trust  by  or  for  the  corporation  in  insurance  funds,  pension 
funds,  hospital  funds,  and  other  special  funds  not  provided  for  in  the 
preceding  accounts.  A separate  account  shall  be  raised  for  each  fund. 

Note. — Securities  issued  or  assumed  by  the  corporation  may  be  included  among 
the  assets  of  special  funds  only  when  they  represent  the  actual  investment  of  funds 
held  in  trust  and  when  the  fund  so  held  would  share  in  the  distribution  of  assets 
covered  by  the  securities  in  case  of  foreclosure  or  dissolution. 

12.  Treasury  Securities  : 

Charge  to  this  account  the  par  value  of  all  stocks  and  bonds  which 
have  been  authorized  and  issued  by  the  corporation  or  assumed  by  it 
and  held  by  the  Treasurer  or  other  fiscal  agent  of  the  corporation  for 
its  benefit.  When  such  securities  are  sold  their  par  value  shall  be 
credited  to  this  account. 

13.  Prepaid  Expenses: 

A.  Prepaid  Rents.  Charge  to  this  account  the  amount  of  rents  paid 
in  advance  of  the  enjoyment  of  the  term.  As  the  term  is  consumed, 
credit  this  account  at  monthly  intervals  and  debit  the  appropriate  rent 
account  with  the  amount  applicable  to  the  month. 

B.  Prepaid  Taxes.  Include  in  this  account  the  excess  of  taxes  paid 
over  the  amount  properly  chargeable  to  Income  or  other  accounts  as 
shown  by  the  debit  balance  in  the  Tax  Liability  account.  (See  Account 
No.  26,  “Taxes  Accrued.”) 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS.  11 

C.  Prepaid  Insurance.  When  premiums  on  insurance  policies  are 
paid  in  advance  of  their  accrual,  the  amount  prepaid  shall  be  charged 
to  this  account.  As  such  premiums  accrue,  they  shall  be  credited  at 
monthly  intervals  to  this  account  and  charged  to  the  appropriate  ex- 
pense account. 

D.  Other  Prepayments.  When  prepayments  are  made  for  anything 
other  than  as  provided  for  in  the  three  preceding  accounts,  the  amount 
of  such  prepayments  shall  be  included  in  this  account. 

14.  Unamortized  Discount  on  Securities  and  Expense: 

When  capital  stock,  funded  debt  securities  and  other  evidence  of 
indebtedness  are  disposed  of  for  a consideration  whose  cash  value  is 
less  than  the  sum  of  the  par  value  of  the  securities  or  other  evidence 
of  indebtedness  and  the  interest  thereon  accrued  at  the  time  the 
transfer  takes  place,  the  excess  of  such  sum  of  the  par  value  and 
accrued  interest  over  the  cash  value  of  the  consideration  received  shall 
be  charged  to  this  account.  To  this  account  shall  also  be  charged  all 
expense  connected  with  the  issue  and  sale  of  evidence  of  debt,  such 
as  fees  for  drafting  mortgages  and  trust  deeds,  fees  and  taxes  for 
recording  mortgages  and  trust  deeds;  cost  of  engraving  and  printing 
bonds,  certificates  of  indebtedness,  and  other  commercial  paper  having 
a life  of  more  than  one  year ; fees  paid  trustees,  provided  for  in  mort- 
gages and  trust  deeds ; fees  and  commissions  paid  underwriters  and 
brokers  for  marketing  such  evidences  of  debt,  and  other  like  expense. 
At  or  before  the  close  of  each  fiscal  period  thereafter,  a proportion  of 
such  discount  and  expense  on  securities  representing  indebtedness 
based  upon  the  life  of  the  security  to  maturity  shall  be  credited  to  this 
account  and  charged  to  Account  No.  109,  “Amortization  of  Debt  Dis- 
count and  Expense.”  Such  discount  and  expense  may,  if  desired,  be 
amortized  more  rapidly  through  charges  of  all  or  any  part  of  it,  either 
at  the  time  of  issue  or  later,  to  Account  No.  114-G,  “Other  Deductions 
from  Surplus.” 

15.  Other  Suspense: 

This  account  includes  all  debits  not  elsewhere  provided  for  and  the 
proper  final  disposition  of  which  is  uncertain.  It  will  include  all  such 
matters  as  expense  of  preliminary  surveys,  plans,  investigations,  etc., 
made  for  determining  the  feasibility  of  projects  under  contemplation. 
Should  any  such  project  later  be  carried  to  completion,  such  amounts 
shall  be  credited  to  this  account  and  charged  to  the  proper  capital 
account  or  accounts;  should  it  be  abandoned,  such  amounts  shall  be 
charged  to  “Corporate  Surplus  or  Deficit.” 

When  the  proper  disposition  of  any  matter  charged  to  this  account 
is  determined,  it  shall  be  credited  to  this  account  and  charged  to  the 
appropriate  account  or  accounts. 


12 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


16.  Construction  Work  in  Progress: 

In  this  account  may  be  included  amounts  expended  upon  plant  that 
is  in  process  of  construction  under  estimates  or  work  orders  but  is  not 
ready  for  service  at  the  date  of  the  balance  sheet.  It  includes,  also, 
such  proportion  of  plant  supervision  expenses,  engineering  expenses, 
tool  expenses,  supply  expenses  and  general  expenses  as  may  be  properly 
chargeable  to  the  construction  work  included  under  this  account. 

When  the  work  is  completed  on  any  job,  the  cost  of  which  has  been 
included  in  this  account,  the  sub-account  covering  that  job  shall  be 
credited  with  the  amount  at  which  it  stands  charged,  and  the  appro- 
priate fixed  capital  or  other  accounts  shall  be  concurrently  charged; 
but  in  no  case  shall  any  expenditure  be  carried  in  this  account  beyond 
the  close  of  the  fiscal  year  next  succeeding  that  in  which  the  expendi- 
ture is  made. 

17.  Corporate  Deficit: 

Under  this  head  should  be  shown  the  debit  balance,  if  any,  in  the 
“Corporate  Surplus  or  Deficit  Account.” 

LIABILITY  ACCOUNTS. 

18.  Capital  Stock: 

To  this  account  should  be  credited  the  par  value  of  the  capital  stock 
issued  and  outstanding,  including  any  that  may  be  in  the  corporation’s 
treasury,  or  held  in  trust  for  it,  or  in  sinking  or  other  funds. 

19.  Installments  on  Stock  Subscription: 

To  this  account  should  be  credited  the  amounts  received  for  capital 
stock  to  be  paid  for  in  installments,  until  such  stock  is  issued. 

20.  Funded  Debt: 

The  funded  obligations  of  the  Corporation  shall  be  divided  into 
classes,  each  class  agreeing  in  all  of  the  following  four  characteristics: 

1.  Mortgage  or  other  lien,  or  security  therefor. 

2.  Rate  of  Interest. 

3.  Interest  Date. 

4.  Date  of  Maturity. 

A separate  sub-account  shall  be  opened  for  each  mortgage,  note,  or 
other  lien  or  security,  and  no  accounts  or  debts  not  agreeing  in  the 
characteristics  as  above  shall  be  included  in  the  same  sub-account. 

To  the  proper  sub-account  shall  be  credited  when  issued  the  total 
receipts  from  the  sale  of  evidence  of  indebtedness  secured  by  the  mort- 
gage, etc.  The  entry  in  any  account  shall  show  also  the  purpose  for 
which  funded  debt  is  issued  and  shall  make  intelligible  reference  to 
the  book,  page,  and  account  wherein  are  shown  any  discount  or  pre- 
mium realized  on  the  amount  issued  or  assumed. 


CLASSIFICATION"  OF  ACCOUNTS,  GAS  CORPORATIONS.  13 

If  the  consideration  received  for  the  indebtedness  is  other  than  money 
the  entry  shall  show  to  whom  issued  and  shall  describe  with  sufficient 
particularity  to  identify  the  actual  consideration  received. 

If  the  issue  in  any  case  is  to  an  agent  of  an  undisclosed  principal, 
the  name  and  address  of  agent  and  the  fact  of  his  agency  must  be 
shown  in  the  entry;  also  short  time  securities  or  notes  and  mortgages 
payable  which  are  due  at  a date  over  one  year  in  the  future. 

21.  Receiver’s  Certificates: 

When  any  receiver  acting  under  the  orders  of  a court  of  competent 
jurisdiction  is  in  possession  of  the  property  of  the  corporation  and 
under  the  orders  of  such  court  issues  certificates  of  indebtedness  charge- 
able upon  such  property,  the  par  value  of  such  certificates  shall  be 
credited  to  this  account.  Interest  accruing  upon  such  certificates  shall 
also  be  credited  monthly  to  this  account. 

22.  Advances  from  System  Corporations  for  Construction,  Equip- 

ment and  Betterments. 

Credit  to  this  account  advances  from  proprietary,  affiliated,  con- 
trolled and  controlling  corporations  to  enable  the  accounting  corpora- 
tion to  pay  for  construction,  equipment,  additions  and  betterments 
when  such  advances  are  of  a permanent  nature  ( i . e.,  where  there  is  not 
an  understanding  that  the  advances  are  to  be  repaid  within  one  year) 
or  when  it  is  understood  and  intended  that  a reimbursement  shall  be 
made  by  the  issue  of  the  securities  of  the  debtor  corporation. 

Note. — Temporary  advances  on  open  accounts  for  system  corporations  and  such 
advances  for  purposes  other  than  construction,  equipment,  additions  and  betterments 
shall  be  included  in  accounts  payable. 

23.  Notes  Payable: 

When  any  note  or  draft  which  matures  not  later  than  one  year  after 
date  of  issue  or  of  demand  is  issued  or  the  primary  liability  thereon 
assumed  by  the  corporation,  the  par  value  thereof  shall  be  credited  to 
this  account  and  when  it  is  paid  it  shall  be  charged  to  this  account  and 
credited  to  “Cash”  or  other  suitable  account  except  secured  notes 
proper  to  be  included  in  Account  No.  20,  “Funded  Debt.” 

24.  Accounts  Payable  : 

A.  Accounts  with  System  Corporations.  Credit  to  this  account  the 
amounts  owing  to  proprietary,  affiliated,  and  controlled  or  controlling 
corporations  on  open  accounts  other  than  those  provided  for  in  Account 
No.  22,  “Advances  from  System  Corporations  for  Construction,  Equip- 
ment and  Betterments.  ’ ’ 

B.  Audited  Vouchers  and  Wages  Unpaid.  Credit  to  this  account  the 
amount  of  audited  vouchers  or  accounts  and  audited  pay  rolls  unpaid 
on  the  date  of  the  balance  sheet.  Include  also  the  amount  of  unclaimed 


14  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

wages  and  outstanding  pay  and  time  checks  issued  in  payment  of 
wages. 

C.  Consumers’  Deposits.  Credit  to  this  account  as  such  deposits  are 
made  all  cash  deposited  with  the  corporation  by  consumers  for  gas  fur- 
nished as  security  for  the  payment  of  bills.  Deposits  refunded  should 
be  charged  to  this  account  and  credited  to  cash.  Deposits  applicable 
to  uncollectible  gas  bills  should  be  credited  to  the  account  of  the  con- 
sumer and  debited  to  this  account. 

D.  Miscellaneous  Accounts  Payable.  Credit  to  this  account  all 
amounts  owing  to  miscellaneous  creditors  on  open  accounts  and  not 
provided  for  elsewhere. 

25.  Interest  Accrued: 

Credit  to  this  account  at  the  close  of  each  month  the  interest  accrued 
during  the  month  upon  the  interest-bearing  indebtedness  issued  or 
assumed  by  the  corporation,  except  interest  on  judgments  and  receivers’ 
certificates.  When  such  interest  is  paid  it  should  be  charged  to  this 
account  and  credited  to  ‘ ‘ Cash  ’ ’ or  other  suitable  account.  The  interest 
accruing  on  any  judgment  against  the  corporation  or  upon  any 
receiver’s  certificates  shall  be  credited  to  the  account  to  which  such 
judgment  or  receiver’s  certificates  stand  credited. 

26.  Taxes  Accrued: 

To  this  account  should  be  credited  taxes  that  have  accrued  but  are 
not  yet  due.  The  full  amount  of  taxes  for  the  year  should  be  estimated 
and  charged  equally  (one  twelfth)  to  the  expenses  (Account  No.  E-80, 
Taxes)  of  each  month,  with  corresponding  credit  to  this  account;  as 
soon  as  the  amount  of  the  taxes  for  the  period  is  known,  the  accounts 
should  be  adjusted  to  conform.  When  taxes  become  due  and  are  vouch- 
ered,  they  should  be  charged  to  this  account. 

27.  Dividends  Declared  : 

When  any  dividend  is  declared,  the  amount  of  the  dividend  shall  be 
credited  to  this  account  and  here  remain  until  it  is  paid,  when  the 
amount  of  the  payment  shall  be  charged  to  this  account  and  credited 
to  “Cash”  or  other  suitable  account. 

28.  Service  Billed  in  Advance: 

When  bills  are  made  for  gas  to  be  furnished  in  future  months,  and 
the  amount  of  the  bills  is  included  in  “Accounts  Receivable,”  but  not 
in  the  revenue  accounts,  the  proportion  of  the  bills  applicable  to  future 
months  shall  be  credited  to  this  account.  As  the  term  for  which  the 
bill  is  made  expires,  the  appropriate  revenue  account  should  be  credited 
and  this  account  debited  with  the  amount  applicable  to  the  current 
month.  (See  Account  No.  R-5,  “Prepaid  Gas.”) 


CLASSIFICATION-  OF  ACCOUNTS,  GAS  CORPORATIONS. 


15 


29.  Reserve  for  Accrued  Depreciation: 

Credit  to  this  account  or  to  appropriate  sub-accounts  such  amounts 
as  are  concurrently  charged  to  Account  No.  E-82,  ‘ ‘ Depreciation  of 
Plant  and  Equipment. 7 ’ Charge  to  this  account  or  to  appropriate  sub- 
accounts (except  as  prescribed  in  the  notes  hereunder)  the  realized 
depreciation  in  the  several  classes  of  tangible  fixed  capital;  that  is,  the 
difference  between  the  original  cost  (estimated  if  not  known)  of  prop- 
erty relinquished,  retired,  or  destroyed,  and  the  value  of  any  salvage 
recovered.  Charge  also  to  this  account  such  part  of  the  expenditures 
for  repairs  concurrently  credited  to  Account  No.  E-77,  “Repairs 
Charged  to  Reserves — Cr.”  as  may  have  been  provided  for  in  estimat- 
ing the  rate  of  depreciation.  (See  Account  No.  E-82,  “Depreciation 
of  Plant  and  Equipment.”) 

Note  A. — When  any  property  is  retired  which  was  installed  prior  to  the  raising 
of  the  “Reserve  for  Accrued  Depreciation,”  only  such  portion  of  the  realized  depreci- 
ation shall  be  charged  to  the  reserve  as  is  due  to  life  in  service  after  the  establish- 
ment of  the  reserve  ; this  portion  may  be  estimated  on  the  basis  of  the  proportion 
which  the  life  in  service  of  the  property  in  question  after  the  establishment  of  the 
reserve  bears  to  its  entire  life  in  service.  The  remainder  of  the  realized  depreciation 
shall  be  charged  to  Account  No.  114-B,  “Realized  Depreciation  Not  Covered  by  Re- 
serves,” unless  the  corporation  has  on  its  books  a depreciation  reserve  accumulated 
prior  to  the  establishment  of  the  prescribed  depreciation  rules,  in  which  case  such 
other  remainder,  or  so  much  of  it  as  may  be  provided  for,  shall  be  charged  to  such 
other  reserve  account. 

Note  B. — When  any  property  is  retired  whose  book  value  has  been  reduced  by 
writing  off  estimated  depreciation,  only  that  part  of  the  realized  depreciation  which 
has  not  already  been  written  off  shall  be  charged  as  above  to  the  “Reserve  for 
Accrued  Depreciation,”  or  Account  No.  114-B,  “Realized  Depreciation  Not  Covered  by 
Reserves.” 

Note  C. — When  any  property  is  retired  whose  book  value  is  greater  than  the 
known  or  estimated  cost,  such  excess  shall  be  charged  to  “Corporate  Surplus  or 
Deficit”  and  the  realized  depreciation  shall  be  charged  as  elsewhere  directed. 

Note  D. — If  any  property  is  sold  for  more  than  its  original  cost,  the  amount  of 
depreciation,  if  any,  accrued  and  credited  to  a reserve  in  respect  thereof,  shall  be 
determined  as  accurately  as  possible  and  charged  to  such  reserve.  The  sum  of  the 
amount  so  charged  and  the  excess  of  the  selling  price  over  the  cost  of  the  property 
shall  be  credited  to  Account  No.  115,  “Miscellaneous  Additions  to  Surplus.” 

30.  Reserve  for  Amortization  of  Intangible  Capital: 

Credit  to  this  account  such  amounts  as  are  concurrently  charged  to 
Account  No.  111-B,  “Amortization  of  Landed  Capital,”  and  to  Ac- 
count No.  E-81,  “Amortization  of  Franchises  and  Patents.”  Charge 
to  this  account  when  any  franchise,  patent,  or  landed  capital  expires 
or  is  relinquished,  the  amount  at  which  it  stood  charged  in  the  corpor- 
ation’s fixed  capital  accounts,  or  such  amount  as  has  been  previously 
credited  to  this  reserve  in  respect  of  such  capital  if  the  amortization 
has  not  been  fully  accomplished.  That  portion  of  its  cost  which  has 
not  been  covered  by  credits  to  the  reserve  or  previously  written  off  shall 
be  charged  to  Corporate  Deficit  account  as  “Amortization  Unprovided 
for  Elsewhere.” 

31.  Unamortized  Premium  on  Debt: 

When  the  funded  debt  securities  or  other  evidence  of  indebtedness 
issued  or  assumed  by  the  corporation  and  disposed  of  for  a considera- 


16  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

tion  whose  cash  value  is  greater  than  the  sum  of  the  par  value  of  such 

securities  or  other  evidence  of  indebtedness  and  the  interest  thereon 

accrued  at  the  time  the  transfer  takes  place,  the  excess  of  the  cash  value 

of  such  consideration  received  over  the  sum  of  the  par  value  of  the 

securities  or  other  evidence  of  indebtedness  and  the  accrued  interest 

shall  be  credited  to  this  account.  At  monthly  intervals  thereafter  a 

proportion  of  such  premium  based  upon  the  life  to  maturity  of  the 

security  or  other  evidence  of  indebtedness  shall  be  charged  to  this 

account  and  credited  to  Account  No.  110,  “ Amortization  of  Premium 

on  Debt — Cr.”  in  the  Income  Account. 

✓ 

32.  Casualty  and  Insurance  Reserves: 

When  any  admitted  liability  arises  because  of  loss  or  damage  to  the 
property  of  others,  or  of  injuries  to  employees  or  other  persons,  the 
amount  of  the  liability  may  (if  not  previously  provided  for  by  insur- 
ance or  self-insurance)  be  charged  to  the  appropriate  operating  expense 
or  other  accounts  and  credited  to  this  account,  against  which  (in  such 
case)  the  actual  cost  of  satisfaction  of  the  liability  shall  be  charged  when 
the  matter  is  determined.  If  the  extent  of  the  liability  can  not  be 
ascertained  promptly  after  the  liability  arises,  it  may  be  estimated  as 
accurately  as  practicable  for  the  purpose  of  determining  the  immediate 
charge  to  the  expense  or  other  appropriate  account,  in  which  case  the 
matter  shall  be  adjusted  when  the  extent  of  the  liability  is  definitely 
ascertained.  If  the  loss  is  of  such  character  that  it  is  in  whole  or  in 
part  indemnifiable  under  any  contract  of  insurance  carried  by  the 
corporation,  the  indemnifiable  portion  of  the  loss  shall  be  charged  to 
the  insurer  and  credited  to  “Casualty  and  Insurance  Reserves.”  Also 
credit  to  this  account  the  amounts  charged  to  operating  expense  Account 
No.  E-64,  “Insurance,”  to  cover  self-carried  risks. 

33.  Income  Invested  Since  December  31,  1912,  in  Fixed  Capital: 

Credit  to  this  account  such  amounts  from  income  or  surplus  as  are 

definitely  set  aside  to  cover  expenditures  for  extensions  or  improve- 
ments of  the  fixed  capital  of  the  accounting  corporation;  such  appro- 
priations include  those  made  discharging  the  principal  (less  the  dis- 
count, if  any,  suffered  at  the  time  of  sale)  of  any  obligations  incurred 
in  the  acquisition  of  any  property  whose  cost  is  carried  in  the  fixed 
capital  accounts.  The  amounts  credited  to  this  account  shall  be  con- 
currently charged  to  “Corporate  Surplus  or  Deficit”  account  as 
“Appropriations  to  Reserves.” 

This  account  should  not  include  temporary  appropriations  for  the 
acquisition  of  property  the  cost  of  which  is  intended  later  to  be  met  by 
an  issue  of  securities,  nor  appropriations  for  the  payment  of  obligations 
which  are  intended  to  be  replaced  by  new  issues. 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


17 


34.  Reserves  Invested  in  Sinking  Funds: 

Credit  to  this  account  appropriations  from  surplus  specifically 
invested  or  set  aside  in  the  hands  of  trustees  for  sinking  and  redemption 
funds,  including  accretions  to  such  funds. 

35.  Other  Reserves  from  Income  or  Surplus  : 

Credit  to  this  account  all  appropriations  of  income  or  surplus  held 
in  reserve,  other  than  appropriations  invested  in  fixed  capital  since 
December  31,  1912,  and  appropriations  invested  in  sinking  or  redemp- 
tion funds.  A separate  sub-account  shall  be  raised  for  each  reserve, 
and  the  entries  in  such  sub-accounts  will  be  required  to  be  shown  sepa- 
rately in  the  annual  report  to  the  Railroad  Commission. 

This  account  includes  the  unexpended  balance,  if  any,  of  appropri- 
ations intended  to  be  invested  in  fixed  capital,  and  such  appropriations 
to  sinking  or  redemption  fund  reserves  as  are  not  specifically  invested. 

36.  Corporate  Surplus  Unappropriated  : 

Under  this  head  should  be  shown  the  credit  balance,  if  any,  in  the 
‘‘Corporate  Surplus  or  Deficit  Account.” 

FIXED  CAPITAL  ACCOUNTS. 

Fixed  Capital  Defined: 

By  the  fixed  capital  of  a corporation  is  meant  the  property,  both 
tangible  and  intangible,  which  is  devoted  to  the  accomplishment  of  the 
principal  purposes  of  its  business  and  which  has  an  expectation  of  life 
in  service  of  more  than  one  year  from  date  of  installation  in  service 
(exception  being  made  in  the  case  of  hand  tools  and  other  small  portable 
tools  that  may  be  lost  or  stolen.) 

Cost  of  Fixed  Capital: 

The  term  “Cost”  as  used  in  the  texts  for  fixed  capital  accounts 
means  the  original  cost  to  the  corporation.  It  includes  not  only  the 
costs  of  labor,  materials  and  supplies  directly  employed  or  consumed 
in  the  construction  and  installation  of  property  classed  as  fixed  capital, 
but  also  the  cost  of  preliminary  plans  and  surveys  and  such  portion  of 
the  expenses  for  engineering  and  plant  supervision  and  general  expenses 
as  may  be  chargeable  to  the  fixed  capital  accounts  under  an  equitable 
plan  for  the  apportionment  of  such  expenses. 

INTANGIBLE  CAPITAL. 

C-l.  Organization: 

Charge  to  this  account  all  fees  paid  to  governments  for  the  privilege 
of  incorporation,  and  all  office  and  other  expenditure  incident  to  organ- 
izing the  corporation  or  other  enterprise  and  putting  it  in  readiness  to 
do  business.  This  includes  cost  of  preparing  and  distributing  pros- 
3— G 


18  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

pectuses,  cost  of  soliciting  subscriptions  for  stock  (but  not  for  loans 
nor  for  the  purchase  of  bonds  or  other  evidence  of  indebtedness) , cash 
fees  paid  to  promoters,  and  the  actual  cash  value  at  the  time  of  organ- 
ization of  securities  paid  to  promoters  for  their  services  in  organizing 
the  enterprise;  counsel  fees;  cost  of  preparing  and  issuing  certificates 
of  stock,  and  cost  of  procuring  certificates  of  necessity  from  state 
authorities,  and  other  like  costs.  Like  costs  incident  to  preparing  and 
filing  certificates  of  authorization  of  increase  of  capital  stock,  and  to 
the  negotiations  and  issue  of  stock  thereunder,  shall  be  classed  as  addi- 
tions. Costs  of  preparing  and  filing  certificates  of  amendment  of 
articles  of  incorporation  shall  be  classed  as  a betterment.  Costs  of 
preparing  and  filing  papers  in  connection  with  the  extension  of  the 
term  of  incorporation  or  with  reincorporation  consequent  upon  reorgan- 
ization shall  be  classified  as  a renewal.  This  account  shall  not  include 
any  discounts  upon  stocks  or  other  securities  issued,  nor  shall  it  include 
any  costs  incident  to  negotiating  loans  or  selling  bonds  or  other  evidence 
of  indebtedness. 

C-2.  Franchise  (Gas)  : 

To  this  account  shall  be  charged  the  amount  (exclusive  of  any  tax  or 
annual  charge)  actually  paid  to  the  State,  or  to  a political  subdivision 
thereof,  as  the  consideration  for  the  grant  of  such  franchise  or  right 
as  is  necessary  to  the  conduct  of  the  corporation’s  gas  operations.  If 
any  such  franchise  is  acquired  by  mesne  assignment,  the  charge  to  this 
account  in  respect  thereof  must  not  exceed  the  amount  actually  paid 
therefor  by  the  corporation  to  its  assignor. 

If  any  such  franchise  has  a life  of  not  more  than  one  year  after  the 
date  when  it  is  placed  in  service,  it  shall  not  be  charged  to  this  account  I 
but  to  the  appropriate  accounts  in  “ Operating  Expenses”  and  in  j 
“Prepayments,”  if  extending  beyond  the  fiscal  year. 

Payments  made  to  the  State,  or  to  some  subdivision  thereof,  as  a I 
consideration  for  granting  an  extension  for  more  than  one  year  of  the  j 
life  period  of  a franchise,  shall  be  classed  as  renewals.  Those  made  as  i 
a consideration  for  franchises  or  extensions  thereof,  covering  additional  j 
territory  to  be  operated  as  a part  of  an  existing  system,  shall  be  classed  l 
as  betterments.  If  the  franchises  cover  separate  and  distinct  new  enter-  j 
prises,  the  payments  therefor  shall  be  classed  as  original. 

Note. — Annual  or  more  frequent  payments  in  respect  to  franchises  must  not  be  l 
charged  to  this  account  but  to  the  appropriate  tax  or  operating  expense  account. 

C-3.  Patent  Rights  (Gas)  : 

Charge  to  this  account  the  cost  of  all  rights  (having  a life  of  more 
than  one  year  from  date  when  placed  in  service)  acquired  by  the  cor-  | 
poration  in  or  under  valid  patents  granted  by  the  United  States  to 
inventor  for*  inventions  and  discoveries  which  are  necessary  to  the  i 
economical  conduct  of  the  corporation’s  gas  operations.  If  any  such  < 


CLASSIFICATION”  OF  ACCOUNTS,  GAS  CORPORATIONS.  19 

right  is  extended  to  cover  a further  period  of  time  than  that  covered 
by  the  original  grant,  the  cost  of  such  extension  shall  be  classed  as  a 
renewal.  A patent  right  acquired  for  use  in  an  existing  system  and 
necessary  to  the  economical  operation  thereof  shall  be  classed  as  an 
addition. 

C-4.  Other  Intangible  Capital: 

Charge  to  this  account  the  cost  of  all  other  intangible  capital  devoted 
to  gas  operations.  All  entries  of  charges  to  this  account  shall  describe 
the  acquired  property  with  sufficient  particularity  clearly  to  identify  it, 
and  shall  also  show  specifically  the  principal  from  whom  acquired  and 
all  agents  representing  such  principal  in  the  transaction ; also  the  term 
of  life  of  such  property,  estimated  if  not  known,  and  if  estimated,  the 
facts  upon  which  the  estimate  is  based. 

Corporations  in  Class  “C”  may  consolidate  these  four  accounts  car- 
j'ying  one  account,  ‘ ‘ Intangible  Capital.  ’ ’ 

TANGIBLE  CAPITAL. 

Landed  Capital. 

C-5.  Land  Devoted  to  Gas  Operations: 

Charge  to  this  account  the  cost  of  the  accounting  corporation’s  landed 
capital  which  is  devoted  to  gas  operations  as  hereinbefore  defined.  This 
includes  land  occupied  by  gas  works  and  their  appurtenances  and  rights 
of  way  for  transmission  and  distribution  lines  and  other  pipe  lines, 
where  such  rights  have  lives  in  excess  of  one  year  from  the  date  when 
such  land  is  placed  in  service.  Such  cost  includes,  when  assumed  or 
paid  by  the  purchaser  in  its  own  behalf,  cost  of  registration  of  title, 
cost  of  examination  of  title,  conveyancer ’s  and  notary ’s  fees,  purchasing 
agent’s  commission  or  fees,  or  proportion  of  purchasing  agent’s  salary, 
taxes  accrued  to  date  of  transfer  of  title,  and  all  liens  upon  the  title 
acquired;  also  cost  of  obtaining  consents  and  payments  for  abutting 
damages. 

Note  A. — Cost  of  buildings  and  other  improvements  must  not  be  included  in  this 
account. 

Note  B.— If  at  the  time  of  acquisition  of  an  interest  in  lands  it  extends  to  build- 
ings or  other  improvements  thereon,  which  improvements  are  devoted  by  the  corpora- 
tion to  its  gas  operations,  and  the  contract  of  acquisition  does  not  determine  the 
price  of  such  improvements,  they  shall  be  appraised  at  their  fair  cash  value  for  use 
in  such  operations,  and  such  appraised  value  shall  be  charged  to  the  appropriate 
structures  account,  and  excluded  from  the  account  “Land  Devoted  to  Gas  Opera- 
tions.” If  such  improvements  are  not  devoted  to  gas  operations  but  are  devoted 
to  other  operations  or  held  as  investments,  the  cost  (or  appraised  value  if  the  cost 
is  not  determined  in  the  contract  of  acquisition)  shall  be  charged  to  the  appropriate 
investment  account  or  capital  account  for  other  operations.  If  the  improvements  are 
removed  or  wrecked,  the  salvage  (less  the  cost  of  removal  or  wreckage)  shall  be 
excluded  from  the  account  “Land  Devoted  to  Gas  Operations.”  The  entries  in  this 
account  must  be  made  in  such  wise  as  to  enable  the  corporation  to  show  in  its  annual 
report  to  the  Railroad  Commission  the  subdivision  of  the  cost  of  its  land  devoted  to 
gas  operations  into  the  following: 

Land  occupied  by  Gas  Works. 

Land  occupied  by  Outside  Holder  Stations. 

Water  Rights. 

Other  Land  Devoted  to  Gas  Operations. 


20 


CLASSIFICATION-  OF  ACCOUNTS,  GAS  CORPORATIONS. 


Production  Capital. 

C-6.  Gas  Wells  and  Derrick: 

Charge  to  this  account  the  cost  of  all  material,  labor  and  expense 
incurred  in  drilling  and  developing  natural  gas  wells.  This  includes  the 
cost  of  boilers,  engines,  derricks,  casings,  driller’s  tools,  and  all  other 
necessary  equipment  used  in  connection  therewith. 

C-7.  Gas  Plant  Buildings  and  General  Structures: 

Charge  to  this  account  the  cost  of  material  used  and  labor  expended 
in  erecting  buildings  to  be  used  for  housing  gas  generating  plants.  This 
account  includes  the  cost  of  excavations,  permanent  foundations,  drain- 
age, gas  and  water  pipes  and  connections,  grading  grounds,  and  furni- 
ture and  fixtures  when  permanently  attached  to  and  made  a part  of 
the  buildings ; also  the  cost  of  architect ’s  plans,  and  of  superintendence 
of  construction ; also  the  cost  of  all  necessary  buildings  in  connection 
therewith,  such  as  dwellings,  stables,  cookhouses,  clubhouses,  etc. ; also 
water  wells  and  pumps. 

C-8.  Holders: 

Charge  to  this  account  the  cost  of  all  holders  at  works  and  outlying 
stations,  including  tanks,  foundations,  holders,  framework,  guides,  pul- 
leys, etc.,  and  inlet  and  outlet  valves  of  such  holders. 

Note. — Holder  housings  shall  be  charged  to  Account  No.  C-7,  “Gas  Plant  Buildings 
and  General  Structures.” 

C-9.  Furnaces,  Boilers  and  Accessories: 

Charge  to  this  account  the  cost  of  all  furnaces,  boilers  and  boiler 
apparatus  and  accessories  devoted  to  the  production  of  steam  for  use  in 
producing  gas  and  in  furnishing  motive  power  in  gas  works  and  stations. 
This  includes  boilers  and  valves  thereto  attached,  appurtenant  furnaces 
and  grates,  and  flues  leading  to  smokestacks  and  chimneys,  and  the 
specially  provided  foundations  and  settings  of  such  boilers  and  appurte- 
nances ; also  iron  smokestacks.  It  also  includes  mechanical  stokers  and 
other  like  apparatus  for  regulating  the  supply  of  fuel,  etc.,  feed  and 
hot  water  heaters  and  economizers,  injectors,  filters,  feed  pumps,  blower 
engines,  water  pipes,  steam  traps,  drains  and  separators  and  pipes  for 
conducting  steam  from  the  boiler  to  the  engine,  to  condensers,  or  to  gas 
generators.  It  does  not  include  steam  pipes  whose  primary  purpose  is 
the  heating  of  buildings. 

C-10.  Gas  Generators: 

Charge  to  this  account  the  cost  of  all  generators  devoted  to  the  pro- 
duction of  gas  from  oil.  This  includes  the  cost  of  shells,  lining  and 
checking,  valves,  stacks,  etc.,  specially  provided  foundations  and  set- 
tings, seals,  superheaters,  and  piping  connected  therewith. 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


21 


C-ll.  Purification  Apparatus: 

Charge  to  this  account  the  cost  of  all  purification  apparatus,  such  as 
condensers,  washers,  scrubbers,  purifiers,  tar  extractors,  etc.,  and  their 
auxiliary  apparatus  and  piping,  including  the  cost  of  specially  provided 
foundations  and  settings. 

C-12.  Steam  Engines: 

Charge  to  this  account  the  cost  of  all  steam  engines  devoted  to  use  as 
prime  movers  in  gas  works.  This  includes  the  specially  provided  foun- 
dations and  settings  of  such  engines.  The  engine,  whether  reciprocating 
or  rotary  (such  as  steam  turbines),  shall  be  considered  to  include  the 
throttle  or  inlet  valve  and  the  governor ; also  condensers  and  air  pumps, 
but  not  the  steam  pipe  leading  from  the  boiler. 

C-13.  Gas  Engines: 

Charge  to  this  account  the  cost  of  all  gas  engines  devoted  to  use  as 
prime  movers  in  gas  works  and  stations.  This  includes  the  specially 
provided  foundations  and  settings  of  such  engines.  The  engine  includes 
the  inlet  valve  and  governor  and  ignition  and  starting  apparatus,  but 
not  the  pipe  leading  from  the  gas  boiler. 

C-14.  Miscellaneous  Gas  Plant  Equipment: 

Charge  to  this  account  the  cost  of  all  miscellaneous  power  plant 
equipment  at  gas  works  which  is  not  includible  in  any  of  the  foregoing 
accounts.  This  includes  such  mechanical  apparatus  as  belts,  pulleys, 
hangers,  countershafts,  and  other  apparatus  intermediary  between  the 
prime  mover  and  the  apparatus  operated,  cranes,  hoists,  etc.,  and 
machine  tools  and  such  other  tools  at  power  plants  as  are  proper  to  be 
capitalized,  etc. 

C-15.  Water  Gas  Sets  and  Accessories: 

Charge  to  this  account  the  cost  of  sets  and  accessories  devoted  to  the 
production  of  water  gas,  including  the  cost  of  specially  provided  founda- 
tions and  settings  for  such  sets.  This  account  includes  not  only  genera- 
tors, carburetors,  superheaters,  seals  and  piping  connected  therewith, 
etc.,  but  also  blast  apparatus,  oil  and  steam  supplying  apparatus,  oil 
and  steam  heaters,  etc.  It  does  not  include  pipes  whose  primary  pur- 
pose is  the  warming  of  buildings. 

C-16.  Accessory  Equipment  at  Works  : 

Charge  to  this  account  the  cost  of  all  equipment  at  works  and  holder 
stations  which  is  not  includible  under  any  of  the  foregoing  accounts. 
This  includes  exhausters,  station  meters,  governors,  etc.,  apparatus  for 
charging  retorts;  conveyors  for  disposing  of  coke  and  other  products 
and  residuals;  tar  and  ammonia  apparatus,  pumps,  fuel  oil,  tanks,  and 
pipe  lines. 


22 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


C— 17.  Miscellaneous  Production  Equipment  : 

Charge  to  this  account  the  cost  of  all  miscellaneous  equipment  used 
in  the  production  of  gas  energy  which  is  not  includible  in  any  of  the 
foregoing  accounts.  This  includes  tools  and  appliances  (working  stock 
only),  horses,  wagons,  harness,  autos,  motorcycles,  bicycles,  furniture 
and  fixtures,  roads,  trestles,  bridges,  etc.,  where  used  specifically  in  the 
production  of  gas. 

Note  A. — Where  any  item  of  miscellaneous  gas  plant  equipment  is  jointly  used 
with  transmission,  distribution  or  other  departments,  the  cost  of  such  item  shall  be 
included  in  appropriate  sub-accounts  under  “General  Capital.” 

Note  B. — It  will  be  required  that  this  account  be  so  kept  as  to  represent  at  all 
times  the  actual  working  miscellaneous  equipment ; and  all  renewals  of  such  working 
equipment  shall  be  charged  to  appropriate  accounts  other  than  capital,  or  the  account 
must  be  adjusted  annually  to  physical  inventory. 

Transmission  Capital. 

C-18.  Transmission  Mains: 

Charge  to  this  account  the  cost  of  high  pressure  transmission  mains 
from  production  plant  to  distribution  system. 

C-19.  Transmission  Buildings  and  General  Structures: 

Charge  to  this  account  the  cost  of  material  used  and  labor  expended 
in  erecting  buildings  to  be  used  for  housing  boosters  and  regulators, 
including  excavations,  permanent  foundations,  drainage,  gas  and  water 
pipes  and  connections,  grading  grounds,  and  furniture  and  fixtures 
when  permanently  attached  to  and  made  a part  of  the  building.  In- 
clude, also,  the  cost  of  architect’s  plans,  and  of  superintendence  of 
construction,  and  the  cost  of  all  necessary  buildings  in  connection 
therewith,  such  as  dwellings,  stables,  cookhouses,  clubhouses,  etc. ; also 
w’ater  wells  and  pumps. 

C-20.  Boosting  Apparatus  and  Regulators: 

Charge  to  this  account  the  cost  of  boosting  equipment,  including 
blowers,  compressors,  engines,  motors  and  connections,  regulators,  and 
governors  and  their  specially  provided  foundations  and  settings. 

Note. — Do  not  include  district  regulators  installed  in  distribution  system. 

C-21.  Miscellaneous  Transmission  Equipment: 

Charge  to  this  account  the  cost  of  all  miscellaneous  equipment  used 
in  the  transmission  of  gas  which  is  not  includible  in  any  of  the  fore- 
going accounts.  This  includes  tools  and  appliances  (working  stock 
only) , horses,  wagons  and  harness,  autos,  motorcycles,  bicycles,  furni- 
ture and  fixtures,  roads,  trestles  and  bridges,  etc.,  where  used  specifically 
in  the  transmission  of  gas. 

Note  A. — Where  any  items  of  miscellaneous  transmission  equipment  are  jointly 
used  with  production,  distribution  or  other  departments,  the  cost  of  such  items  shall 
be  included  in  appropriate  sub-accounts  under  “General  Capital.” 

Note  B. — It  will  be  required  that  this  account  be  so  kept  as  to  represent  at  all 
times  the  actual  working  miscellaneous  equipment ; and  all  renewals  of  such  working 
equipment  shall  be  charged  to  appropriate  accounts  other  than  capital  or  the  account 
must  be  adjusted  annually  to  physical  inventory. 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


23 


Distribution  Capital. 

C-22.  Distribution  Mains  : 

Charge  to  this  account  the  cost  of  all  mains  in  place.  This  includes 
pipe  lines  from  holders  or  trunk  line  valves  to  beginning  of  services, 
including  cost  of  trenching,  placing  pipe,  filling  trenches,  and  restoring 
surface  to  its  former  condition,  or  to  that  required  by  municipal  author- 
ities. 

Note. — Do  not  include  any  patching  of  street  surface  after  completion  of  original 
construction  and  no  mains  devoted  solely  to  municipal  street  lighting  systems. 

C-23.  Gas  Services: 

Charge  to  this  account  the  cost  of  the  corporation’s  property  in  service 
pipes  and  appurtenances  in  or  leading  to  consumer’s  premises.  This 
includes  the  cost  of  material  in  place,  cost  of  trenching  for  placing  ser- 
vices, and  of  filling  trenches,  and  restoring  surface  to  proper  condition. 

Note  A. — When  consumers  are  required  to  pay  some  or  all  of  the  cost  of  services, 
only  that  portion  of  the  cost  not  chargeable  to  the  consumer  is  chargeable  to  this 
. account ; in  all  cases  where  only  a portion  of  the  cost  of  the  service  is  chargeable  to 
this  account,  the  entry  in  this  account  shall  show  the  entire  cost  of  the  service  as 
well  as  the  amount  charged  to  this  account. 

Note  B. — Where  services  extending  only  from  main  to  curb  (or  to  lot  line)  are 
placed  before  actually  required  for  the  purpose  of  supplying  consumers,  the  entry  of 
cost  must  show  the  fact.  Such  services  will  be  required  to  be  separately  reported  in 
the  annual  reports  of  corporations  to  the  Railroad  Commission. 

Note  C. — Cost  of  renewing  or  modifying  services  shall  not  be  charged  to  this 
, account. 

| C-24.  Gas  Meters  : 

Charge  to  this  account  the  cost  of  all  meters  installed  for  determining 
the  amount  of  gas  delivered  to  consumers.  The  cost  of  the  original 
testing  and  the  setting  of  each  meter  will  be  charged  to  this  account 
if  it  is  the  policy  of  the  accounting  corporation  to  capitalize  the  original 
setting  of  meters.  Subsequent  removing  and  the  resetting  of  meters 
will  not  be  charged  to  this  account,  but  to  operating  expenses. 

Note  A.— Upon  filing  with  the  Railroad  Commission  a notice  thereof,  the  account- 
ing corporation  may  also  include  in  this  account  the  cost  of  meters  temporarily  with- 
‘ drawn  from  service. 

Note  B. — It  will  be  required  that  the  account  be  so  kept  as  to  represent  at  all 
times  the  actual  meters  in  service  or  temporarily  out  of  service ; and  all  renewals 
shall  be  charged  to  appropriate  accounts  other  than  capital  or  the  account  must  be 
adjusted  annually  to  physical  inventory. 

C-25.  Gas  Regulators: 

Charge  to  this  account  the  cost  of  all  district  or  house  type  regulators. 

Note. — Do  not  charge  station  regulators  to  this  account. 

C-26.  Municipal  Street  Lighting  Fixtures  (Gas)  : 

Charge  to  this  account  the  cost  of  the  corporation’s  property  in  the 
lamps,  posts  and  auxiliary  apparatus  and  appliances  used  in  lighting 
streets  for  a'  municipal  corporation.  Such  cost  includes  not  only  the 
cost  of  material,  but  also  the  cost  of  first  setting  and  coupling  up.  It 
does  not  include  cost  of  removal  or  change  of  position. 

Note. — Where  the  municipality  requires  for  its  special  benefit  the  extension  of 
mains  and  services  for  street  lighting,  such  extensions  may,  so  long  as  used  solely 


24 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


for  street  lighting,  be  charged  to  this  account,  provided  a full  description  of  the 
extensions  so  charged  and  the  amounts  charged  in  respect  thereof  be  filed  with  the 
Railroad  Commission  on  or  before  the  date  when  the  entry  thereof  is  made  upon  the 
books  of  the  corporation. 

C-27.  Gas  Engines  and  Appliances: 

Charge  to  this  account  the  cost  of  the  corporation’s  property  in  gas 
engines  leased  to  consumers  (including  municipal  corporations),  but 
not  of  those  held  for  purposes  of  sale.  Such  engines  include  all  appli- 
ances for  the  production  of  mechanical  motion  through  the  consumption 
of  gas.  Also  charge  to  this  account  the  cost  of  the  corporation’s  prop- 
erty in  all  gas  stoves  and  other  heating  appliances  leased  to  consumers, 
but  not  of  those  held  for  purposes  of  sale.  This  includes  stoves,  ranges, 
heaters,  hot  plates,  sadirons,  tailors’  irons  and  gooses,  and  other  like 
devices  and  appliances  consuming  gas  for  the  direct  production  of  heat. 

Note  A. — The  cost  of  setting  and  connecting  such  engines  and  heating  appliances 
on  the  premises  of  consumers  and  the  cost  of  resetting  or  of  removal  shall  not  be 
charged  to  this  account. 

Note  B. — Upon  filing  with  the  Railroad  Commission  a notice  thereof,  the  account- 
ing corporation  may  also  include  in  this  account  the  cost  of  such  gas  engines  and 
appliances  temporarily  withdrawn  from  service. 

C-28.  Commercial  Arc  Lamps: 

Charge  to  this  account  the  cost  of  all  commercial  arc  lamps  supplied 
to  consumers  (including  municipal  buildings),  where  such  lamps  have 
an  expectancy  of  life  in  service  of  more  than  one  year. 

Note. — Upon  filing  with  the  Railroad  Commission  a notice  thereof,  the  accounting 
corporation  may  also  include  in  this  account  the  cost  of  arc  and  other  lamps  tempor- 
arily out  of  service. 

C-29.  Installations  on  Consumers’  Premises*. 

Charge  to  this  account  the  cost  of  all  labor  and  material  in  the  in- 
stallation of  equipment  on  consumers’  premises  for  purposes  of  supply- 
ing gas  of  certain  kind  or  character.  Such  installations  as  come  here- 
under would  include  furnaces,  retorts,  heaters,  ranges,  engines,  etc. 

Note. — Do  not  include  in  this  account  meters,  services,  appliances  loaned,  or  com- 
mercial arc  lamps  and  lamps  installed  in  connection  with  rates  or  renewals  thereof. 

C-30.  Miscellaneous  Distribution  Equipment: 

Charge  to  this  account  the  cost  of  all  miscellaneous  equipment  used 
in  the  distribution  of  gas  which  is  not  includible  in  any  of  the  foregoing 
accounts.  This  includes  tools  and  appliances  (working  stock  only), 
horses,  wagons  and  harness,  autos,  motorcycles,  bicycles,  furniture  and 
fixtures,  roads,  trestles  and  bridges,  etc.,  where  used  specifically  in  the 
distribution  of  gas. 

Note. — Where  any  items  of  miscellaneous  distribution  equipment  are  jointly  used 
with  production,  transmission  or  other  departments,  the  cost  of  such  items  shall 
be  included  in  appropriate  sub-accounts  under  “General  Capital.” 

General  Capital. 

C-31.  General  Structures: 

Charge  to  this  account  the  cost  of  all  buildings  and  other  structures 
of  a permanent  character  devoted  to  general  corporate  purposes,  not 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


25 


restricted  to  gas  operations  and  not  includible  in  any  of  the  depart- 
mental accounts;  also  of  all  fixtures  permanently  attached  thereto  and 
made  a part  thereof,  such  as  water  pipes  and  fixtures,  steam  pipes  and 
fixtures  for  warming  and  ventilating,  gas  pipes  and  fixtures  for  lighting, 
etc. ; electric  wiring  and  fixtures  for  lighting,  signaling,  etc. ; elevators, 
etc.,  and  the  engines  and  motors  specially  provided  for  operating  them; 
furnaces,  boilers,  etc.,  specially  provided  for  producing  steam  for  such 
engines  and  for  heating ; electric  or  gas  generators  specially  provided 
for  producing  current  or  gas  for  lighting  such  buildings,  etc.  This 
account  includes  such  piers  and  other  foundations  for  machinery  and 
apparatus  as  are  designed  to  be  as  permanent  as  the  buildings  in  (or 
in  connection  with)  which  they  are  constructed,  and  to  outlast  the  first 
machinery  or  apparatus  mounted  thereon. 

Note  A. — Among  such  buildings  may  be  mentioned  general  office  buildings,  general 
shop  buildings,  general  storehouses,  general  stable  buildings,  etc.  Where  general 
offices,  shops,  storehouses,  stables,  etc.,  are  in  buildings  includible  in  a departmental 
account,  as,  e.  g.,  in  a retort  house,  no  part  of  the  cost  of  such  building  shall  be 
charged  to  this  account.  This  account  is  provided  for  structures  of  a general  or 
miscellaneous  character  not  assignable  to  any  particular  department. 

Note  B. — When  furnaces  and  boilers  are  used  primarily  for  furnishing  steam  for 
some  particular  department  and  only  incidentally  for  furnishing  steam  for  heating  a 
general  building  and  operating  the  equipment  therein,  the  entire  cost  of  such  furnaces 
and  boilers  shall  be  charged  to  the  appropriate  departmental  capital  account,  and  no 
part  to  the  account  “General  Structures.” 

C-32.  General  Equipment: 

Charge  to  this  account  the  cost  of  all  equipment  of  general  structures, 
as  provided  under  the  following  heads : 

A.  General  Office  Equipment.  This  includes  the  cost  of  all  equip- 
ment of  general  offices,  such  as  desks,  chairs,  tables,  movable  safes,  filing 
cases,  drafting-room  equipment,  and  other  like  office  appliances  and 
equipment;  also  engineering  instruments. 

B.  General  Shop  Equipment.  This  includes  the  cost  of  all  equip- 
ment specially  provided  for  general  shops,  such  as  furnaces,  boilers,  gas 
producers,  engines,  electric  generators,  and  other  power  apparatus  used 
in  operating  machinery  in  such  shops;  machine  tools,  cranes,  hoists, 
shafting,  belts  and  the  like  shop  equipment;  also  such  smithing  equip- 
ment in  general  shops  as  is  used  principally  for  other  general  purposes 
than  shoeing  horses  and  repairing  vehicles. 

Note. — Hand  and  other  small  portable  tools  liable  to  be  lost  or  stolen  shall  not 
be  included  herein,  but  portable  tools  and  apparatus  of  special  value  may  be  charged 
to  this  account  and  remain  herein  so  long  as  record  is  kept  of  the  persons  to  whom 
such  tools  and  apparatus  are  issued  and  such  persons  are  made  responsible  therefor. 

C.  General  Store  Equipment.  This  includes  the  cost  of  all  equip- 
ment of  general  store  structures,  such  as  movable  counters,  movable 
shelving,  and  other  movable  equipment  of  like  nature,  carts,  barrows, 
trucks,  etc.,  and  other  apparatus  and  appliances  used  in  handling 
materials  and  supplies. 

Note. — Counters,  shelving  and  the  like  which  are  permanently  attached  to  the 
structure  shall  be  charged  to  Account  No.  C-31,  “General  Structures,”  and  not  to 
this  account. 

4 — G 


26  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

D.  General  Stable  and  Garage  Equipment.  This  includes  the  cost  of 
all  equipment  of  general  stables  and  garages,  including  horses,  harness, 
drays,  wagons,  automobiles  and  other  vehicles,  equipment  of  shoeing 
shops,  harness  repair  shops,  vehicle  repair  shops,  etc. 

E.  Miscellaneous  Equipment.  This  includes  the  cost  of  all  other 
equipment,  such  as  laboratory  equipment  and  other  tools  and  instru- 
ments and  miscellaneous  equipment  not  includible  in  the  foregoing 
accounts  under  General  Equipment. 

C-33.  Telephone  Lines: 

Charge  to  this  account  the  cost  of  all  material  and  labor  expended  in 
the  construction  of  telephone  lines  for  the  entire  system.  These  charges 
should  include  the  cost  of  wires  and  insulators,  cross-arms,  poles  (where 
devoted  solely  to  supporting  telephone  lines),  telephone  instruments, 
switchboards,  etc. 

C-34.  Roads,  Trestles  and  Bridges: 

Charge  to  this  account  the  cost  of  all  labor  and  material  expended  in 
the  construction  of  roads,  trestles,  bridges  and  tramways  required  for 
the  transportation  of  machinery  and  supplies,  or  the  operation  of  the 
corporation. 

Note. — Do  not  include  in  this  account  any  roads,  trestles  or  bridges  which  may  be 
solely  for  the  use  of  Production  Capital,  Transmission  Capital  or  Distribution  Capital. 

C-35.  Undistributed  Construction  Expenditures  : 

This  account  includes  the  expenditures  provided  for  in  the  following 
sub-accounts,  when  such  expenditures  cannot  be  satisfactorily  allocated 
to  the  fixed  capital  accounts  to  which  they  relate.  Upon  the  retirement 
or  withdrawal  of  any  property  with  respect  to  which  any  charge  is 
included  in  this  account  or  any  sub-account  hereunder,  there  shall  be 
credited  to  this  account  or  the  appropriate  sub-account  such  part  of  the 
undistributed  expenditures  during  construction  (estimated  if  not 
known)  as  may  be  applicable  to  the  property  withdrawn  or  retired. 

A.  Engineering  and  Superintendence.  Charge  to  this  account  all 
expenditures  for  services  of  engineers,  draftsmen,  and  superintendents 
emploj^ed  on  preliminary  and  construction  work,  and  expenses  incident 
to  the  work  of  such  employees  when  the  expenditures  can  not  be 
assigned  to  specific  construction  accounts. 

B.  Law  Expenditures  During  Construction.  Charge  to  this  account 
general  law  expenditures  incurred  in  the  construction  of  the  gas  plant, 
such  as  the  pay  and  expenses  of  counsel,  solicitors  and  attorneys,  their 
clerks  and  attendants,  and  expenses  of  their  offices;  the  cost  of  printing 
briefs,  legal  forms,  testimony,  reports,  etc. ; payments  to  arbitrators  for 
the  settlement  of  disputed  questions;  cost  of  suits  and  payment  of 
special  fees,  notarial  fees  and  witness  fees ; and  court  expenses.  When 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


27 


any  of  the  expenditures  enumerated  herein  can  be  charged  directly  to 
the  account  for  which  incurred,  they  shall  be  so  charged,  and  not  to  this 
account.  Expenditures  incurred  in  connection  with  the  acquisition  of 
right  of  way  shall  be  charged  to  Account  No.  C-5,  “Land  Devoted  to 
Gas  Operations,”  and  in  the  acquisition  of  other  land  to  Account  No. 
C-31,  “ General  Structures.  ” Law  expenditures  in  connection  with  the 
organization  of  the  corporation  shall  be  charged  to  Account  No.  C-l, 
‘ ‘ Organization.  ’ ’ 

C.  Injuries  During  Construction.  Charge  to  this  account  all  expendi- 
tures incident  to  injuries  to  persons  when  caused  directly  in  connection 
with  construction  of  gas  plant  and  equipment;  proportion  of  salaries 
and  expenses  of  physicians  and  surgeons ; nursing  and  hospital  attend- 
ance, medical  and  surgical  supplies,  artificial  limbs,  railroad  and  car- 
riage fares  for  conveying  injured  persons  and  attendants;  funeral 
expenses  (including  payment  to  undertakers),  proportion  of  pay  and 
expenses  of  claim  adjusters  and  their  clerks,  and  pay  and  expenses  of  em- 
ployees and  others  called  in  consultation  in  relation  to  the  adjustment 
of  claims  coming  under  this  head ; also  witness  fees  and  amount  of  final 
judgments. 

D.  Taxes  During  Construction.  Charge  to  this  account  all  taxes  and 
assessments  levied  and  paid  on  property  belonging  to  the  corporation 
while  under  construction  and  before  the  plant  is  opened  for  commercial 
operation,  except  special  taxes  assessed  for  street  and  other  improve- 
ments, such  as  grading,  sewering,  curbing,  guttering,  paving,  sidewalks, 
etc.,  which  shall  be  charged  to  the  account  to  which  the  property  bene- 
fited is  charged. 

E.  Miscellaneous  Construction  Expenses.  Charge  to  this  account  the 
salaries  and  expenses  of  executive  and  general  offices  of  a gas  plant 
under  construction ; clerks  in  general  offices  engaged  on  construction 
accounts  or  work;  rent  and  repair  of  general  offices  when  rented,  with 
the  office  expenses ; insurance  during  construction ; also  all  construction 
and  equipment  items  of  a special  and  incidental  nature  which  can  not 
properly  be  charged  to  any  other  account  in  this  classification. 

Note  A. — This  account  may  include  a suitable  proportion  of  store  expenses  when 
such  expenses  are  not  assignable  to  specific  materials. 

Note  B. — This  account  shall  not  include  any  costs  of  organization,  or  any  costs 
or  discounts  connected  with  the  issue  and  disposal  of  stocks,  funded  debt,  or  other 
securities,  and  commercial  paper. 

C-36.  Interest  During  Construction: 

Charge  to  this  account  the  interest  accrued  upon  all  moneys  (and 
credits  available  upon  demand)  acquired  for  use  in  connection  with 
the  construction  and  equipment  of  the  property  from  the  time  of  such 
acquisition  until  the  construction  is  ready  for  use.  Interest  receivable 
accrued  upon  such  moneys  and  credits  shall  be  credited  to  this  account. 


28  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

To  this  account  shall  also  be  credited  discounts  realized  through  prompt 
payment  of  bills  for  materials  and  supplies  used  in  construction,  unless 
such  discounts  are  credited  to  the  particular  bills. 

C-37.  Cost  of  Plant  Purchased  in  Lieu  of  Plant  Constructed: 

Charge  to  this  account  the  cost  of  gas  works  purchased  in  case  the 
plant  of  the  corporation  is  obtained  by  purchase  instead  of  being  con- 
structed by  it. 

The  entry  to  this  account  should  show  with  sufficient  detail  the  name 
of  the  parties  from  whom  purchased,  the  purchase  price  and  other 
facts  pertinent  to  such  purchase.  All  books  and  records  should  be 
obtained  at  time  of  purchase.  The  Railroad  Commission  will  require 
full  and  complete  details  of  all  transactions  of  purchase. 

C-38.  Fixed  Capital  in  Other  Departments: 

Charge  to  this  account  the  cost  of  all  property  of  the  corporation, 
both  tangible  and  intangible,  devoted  to  its  operations  other  than  gas, 
not  including  investments  as  defined  in  Account  No.  8,  “ Investments.  ’ 9 

C-39.  Fixed  Capital  Installed  Prior  to  January  1,  1913 : 

In  this  account  (on  the  balance  sheet  statement)  shall  be  shown  the 
total  of  the  balances  in  the  ledger  accounts  representing  the  corpora- 
tion’s fixed  capital  which  was  installed  prior  to  January  1,  1913,  and 
which  is  still  in  service  at  the  date  of  the  balance  sheet. 

The  accounts  representing  the  fixed  capital  of  the  corporation  as 
carried  on  its  books  at  the  close  of  December  31,  1912,  shall  be  so 
designated  upon  the  books  of  the  corporation  as  to  show  clearly  that 
they  relate  only  to  fixed  capital  installed  prior  to  the  close  of  that  date. 
No  debits  shall  be  made  to  such  accounts  with  respect  to  any  property 
subsequently  acquired,  but  the  cost  of  such  property  shall  be  charged 
to  the  accounts  hereinbefore  provided.  When  any  property  acquired 
prior  to  January  1,  1913,  is  withdrawn  or  retired  from  service,  the 
amount  at  which  it  stands  charged  shall  be  credited  to  the  account  in 
which  it  is  charged  and  concurrent  debits  shall  be  made  (1)  to  “Cash,” 
“Materials  and  Supplies,”  or  other  account,  as  may  be  appropriate, 
for  the  value  of  any  salvage;  (2)  to  Account  No.  29,  “Reserve  for 
Accrued  Depreciation,”  or  to  Account  No.  30,  “Reserve  for  Amortiza- 
tion of  Intangible  Capital,”  for  the  amount  of  depreciation  or  other 
amortization  applicable  to  the  period  subsequent  to  December  31,  1912 ; 
and  (3)  to  “Corporate  Surplus  or  Deficit”  account  for  the  remainder 
of  the  amount  for  which  the  property  is  carried  in  the  accounts  for  fixed 
capital;  unless  the  corporation  had  on  that  date  a reserve  for  retire- 
ments, in  which  case  the  latter  amount,  or  so  much  of  it  as  may  be 
applicable,  shall  be  charged  to  such  reserve  account. 

Note. — In  the  reports  to  the  Railroad  Commission,  a statement  will  be  required 
showing  the  names  of  the  accounts  for  fixed  capital  actually  carried  by  the  corpora- 
tion on  December  31,  1912,  and  the  balance  therein  at  the  date  of  the  report. 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


29 


C-40.  Fixed  Capital  Installed  Since  December  31,  1912 : 

This  account  is  a summary  of  those  accounts  which  include  the  cost 
of  fixed  capital  installed  since  December  31,  1912. 

The  sum  of  the  balances  in  Accounts  C-l  to  C-4,  “Intangible  Cap- 
ital,” and  C-5  to  C-40,  “Tangible  Capital,”  should  be  shown  on  the 
balance  sheet  statement  under  this  account. 

INCOME  ACCOUNT. 

Income  Account  Defined  : 

The  Income  account  brings  together  those  accounts  that  show  the  total 
amount  of  money  that  the  corporation  has  received  or  becomes  entitled 
to  receive  for  services  rendered  during  a given  period,  the  return  accru- 
ing during  the  period  upon  investments,  and  the  disbursements  and  obli- 
gations incurred  that  affect  the  disposition  of  the  amounts  so  received  or 
accrued.  The  following  accounts  make  up  the  Income  account  statement 
and  should  be  closed  into  the  Income  account  at  the  close  of  the  year  or 
other  fiscal  period. 

101.  Operating  Revenues  : 

Include  in  this  account  the  total  operating  revenues  of  the  corporation 
for  the  period  covered  by  the  income  statement.  (See  Accounts  Nos. 
R-l  to  R-14,  inclusive,  under  “Operating  Revenues.”) 

102.  Operating  Expenses  : 

Include  in  this  account  the  total  operating  expenses  of  the  corporation 
for  the  period  covered  by  the  income  statement.  (See  Accounts  E-l  to 
E-81,  inclusive,  under  “Operating  Expenses.”) 

103.  Uncollectible  Gas  Bills: 

Charge  to  this  account  (and  credit  the  account  receivable  in  which 
theretofore  carried)  the  amount  of  any  account  for  gas  furnished  which, 
after  a reasonably  diligent  effort  to  collect,  has  proved  impracticable  of 
collection.  This  account  includes  only  uncollectible  bills  for  amounts 
which  have  been  treated  as  operating  revenues ; other  uncollectible  bills 
should  be  charged  to  Account  No.  105-G,  “Uncollectible  Non-operating 
Revenues,”  or  to  Corporate  Surplus  or  Deficit  account,  as  may  be 
apropriate. 

104.  Non-operating  Revenues  : 

A.  Rent  Accrued  from  Lease  of  Gas  Plant.  Credit  to  this  account 
monthly,  as  they  accrue,  all  revenues  from  the  corporation’s  interests 
in  gas  plant  or  equipment  held  by  others  under  some  form  of  lease 
whereby  it  surrenders  possession  of  such  property. 

This  account  is  intended  to  cover  only  rents  receivable  for  the  use  of 
gas  plants  or  operating  units  held  as  a whole  under  some  form  of  lease. 


30  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

B.  Miscellaneous  Rent  Revenues.  Credit  to  this  account  monthly  the 
revenues  accruing  to  the  corporation  as  a return  upon  rented  property 
other  than  gas  plant  and  equipment  held  by  others  under  lease,  as  pro- 
vided for  in  the  preceding  account. 

C.  Interest  and  Dividend  Revenues.  Credit  to  this  account  monthly 
all  revenues  accruing  to  the  corporation,  not  retained  in  specific  sinking 
or  other  reserve  funds,  from  interest  upon  all  its  bank  balances,  special 
deposits,  and  other  assets,  when  such  interest  is  a liability  of  solvent 
concerns  or  individuals,  and  from  dividends  declared  or  guaranteed  by 
solvent  concerns  upon  stocks  held  by  the  corporation.  No  interest  or 
dividends  upon  securities  issued  or  assumed  by  the  accounting  corpora- 
tion shall  be  credited  to  this  account  or  to  any  other  revenue  account. 

Class  A corporations  will  subdivide  the  revenues  included  herein  and 
keep  separate  accounts  for — 

a.  Interest  Revenues  on  Funded  Debt  Owned. 

b.  Miscellaneous  Interest  Revenues. 

c.  Dividend  Revenues. 

D.  Sinking  and  Other  Reserve  Accretions.  Credit  to  this  account 
and  charge  the  appropriate  fund  or  its  trustee  monthly  the  revenues 
accruing  from  securities  and  other  assets  in  the  hands  of  trustees  or  spe- 
cifically set  aside  for  sinking  and  other  special  funds,  when  the  revenues 
are  retained  as  part  of  the  funds.  Such  revenues  may  include  appro- 
priations equal  to  interest  upon  securities  issued  or  assumed  by  the 
accounting  corporation  where  such  securities  are  acquired  through  the 
operation  of  a sinking  or  other  reserve  fund. 

Note. — If  the  assets  of  a fund  are  to  be  represented  by  a reserve  from  surplus, 
concurrent  entries  should  be  made  charging  Account  No.  113,  “Sinking  Fund  Appro- 
priations,” or  Account  No.  114-E,  “Appropriations  to  Reserves,”  crediting  Account  No. 
34,  “Reserves  Invested  in  Sinking  Funds,”  or  No.  35,  “Other  Reserves  from  Income 
or  Surplus,”  as  may  be  appropriate. 

E.  Profits  from  Operations  of  Others.  Whenever  in  accordance  with 
the  terms  of  any  contract  the  corporation  is  entitled  to  participate  in  the 
profits  from  operations  of  others,  all  revenues  accruing  to  the  corpora- 
tion from  such  source  shall  be  credited  to  this  account. 

Note. — This  account  does  not  include  any  dividends  on  stocks  or  any  remunera- 
tion for  services. 

F.  Miscellaneous  Non-operating  Revenues.  Credit  to  this  account  all 
non-operating  revenues  not  provided  for  in  the  foregoing  accounts. 

105.  Non-operating  Revenue  Deductions*. 

A.  Rent  Expenses.  Charge  to  this  account  all  expenses  arising  in  con- 
nection with  the  procuring  of  revenues  from  rented  property,  such  as  the 
cost  of  negotiating  contracts,  advertising  for  tenants,  fees  paid  convey- 
ancers, collectors’  commissions,  cost  of  enforcing  payment  of  rent,  cost 
of  ousting  tenants,  etc.  This  includes  the  expense  accruing  while  the 
property  is  idle  and  awaiting  an  occupant ; also  the  cost  of  maintenance 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


31 


of  property  when  such  cost  is  borne  by  the  corporation.  Such  main- 
tenance includes  depreciation  as  well  as  reparable  wear  and  tear.  It 
does  not  include  taxes. 

B.  Interest  Expense.  Charge  to  this  account  all  expense  arising  in 
connection  with  procuring  interest  upon  investments,  such  as  expense 
of  collection,  expense  of  investigating  delay  in  payment,  expense  of 
enforcing  payment,  and  the  like.  It  does  not  include  taxes  on  such 
investments. 

C.  Dividend  Expense.  Charge  to  this  account  all  expense  arising 
in  connection  with  the  collection  of  dividends  on  stocks  of  other  corpor- 
ations, including  expense  incurred  in  the  investigation  of  the  affairs 
of  the  corporations  whose  stocks  are  held,  whether  for  the  purpose  of 
detecting  mismanagement  or  for  the  purpose  of  inducing  the  declara- 
tion of  dividends,  and  all  expense  connected  with  enforcing  payment 
of  dividends  when  declared.  It  does  not  include  taxes  on  such 
investments. 

D.  Others’  Operations  Expense.  Charge  to  this  account  the  cost 
of  negotiating  contracts  whereunder  the  corporation  is  to  participate 
n the  profit  resulting  from  the  operations  of  others;  also  all  expense 
)f  collecting  the  corporation’s  proportion  of  such  profits,  and  all 
expense  connected  with  procuring  the  modification  or  the  dissolution 
)f  any  such  contract. 


E.  Miscellaneous  Non-operating  Expense.  Charge  to  this  account  all 
ion-operating  expense  not  provided  for  in  the  foregoing  sub-accounts. 

F.  Non-operating  Taxes.  Charge  to  this  account  all  taxes  payable 
>y  the  corporation  accrued  upon  non-operating  property,  and  all  taxes 
assignable  to  non-operating  revenues. 

G-.  Uncollectible  N on-operating  Revenues.  When  any  non-operating 
evenues  are  judged  by  the  corporation  to  be  uncollectible,  the  amount 
hereof  shall  be  credited  to  the  account  in  which  theretofore  charged  and 
harged  to  this  account. 


06.  Interest  Accrued  on  Funded  Debt  : 

Charge  to  this  account  monthly  all  interest  accrued  on  outstanding 
unded  debt  issued  or  assumed  by  the  corporation.  This  account  does 
ot  include  interest  on  securities  held  by  the  corporation  in  its  treasury, 
1 sinking  or  other  reserve  funds,  or  pledged  as  collateral. 


Note  A.— The  amount  charged  to  this  account  shall  be  concurrently  accredited  to 
ccount  No.  25,  “Interest  Accrued,”  to  which  account  shall  be  debited  payments 
ade  on  account  of  interest.  ^ J 


Note  B.— - If  any  of  the  funded  debt  securities  issued  or  assumed  by  the  corpora- 
on  are  held  in  its  sinking  or  other  reserve  funds  and  the  interest  on  such  funded 
!Dt  is  an  accretion  to  the  fund,  the  interest  on  such  securities  shall  not  be  charged 
this  account  but  an  amount  equal  to  the  interest  on  the  funded  debt  so  held  shall 
i charged  to  Account  No.  113,  “Sinking  Fund  Appropriations.”  This  does  not  apply 
securities  m funds  held  in  trust  by  the  corporation  such  as  employees’  pension 
xids  and  savings  funds. 


32  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

107.  Other  Interest  Deductions  : 

Charge  to  this  account  monthly  all  interest  accrued  on  receivers  ’ certi- 
ficates and  on  interest-bearing  unfunded  obligations  of  the  corporation. 

Note. — The  amount  charged  to  this  account  shall  be  concurrently  credited  to 
Account  No.  25,  “Interest  Accrued,”  or  to  No.  21,  “Receivers’  Certificates,”  to  which 
accounts  shall  be  debited  payments  made  on  account  of  such  interest. 

108.  Rent  Deductions: 

Charge  to  this  account  monthly  all  amounts  accrued  against  the  cor- 
poration for  rents,  other  than  minor  rents  provided  for  elsewhere  as 
chargeable  to  operating  expenses.  It  includes  the  matters  provided  for 
in  the  following  sub-accounts: 

A.  Bent  for  Lease  of  Other  Gas  Plant.  Charge  to  this  account 
monthly  all  amounts  accrued  against  the  corporation  for  rent  of  gas 
plant  and  equipment  which  it  holds  under  some  form  of  lease  or  other 
and  of  which  it  has  the  exclusive  possession. 

This  account  is  intended  to  cover  only  rents  payable  for  the  use  of 
gas  plants  or  operating  units  held  as  a whole  under  some  form  of  lease. 

B.  Miscellaneous  Bent  Beductions.  Charge  to  this  account  rents  pay- 
able accrued  not  provided  for  elsewhere. 

109.  Amortization  of  Debt  Discount  and  Expense: 

Charge  to  this  account  at  or  before  the  close  of  any  fiscal  period  that 
proportion  of  the  unamortized  discount  and  expense  to  Account 
No.  114—G,  ‘ ‘ Other  Deductions  from  Surplus.  ” This  proportion  shall  be 
determined  according  to  a rule,  the  uniform  application  of  which  during 
the  interval  between  the  issue  and  the  maturity  of  any  debt  will  com- 
pletely amortize  or  wipe  out  the  discount  at  which  such  debt  was  issued 
and  the  debt  expense  connected  therewith.  Such  amortization  may  at 
the  option  of  the  corporation  be  earlier  effected  by  charging  all  or 
any  portion  of  such  discount  and  debt  expense  to  Account  No.  114-G, 
“Other  Deductions  from  Surplus,”  immediately  upon  issue  of  the  debt 
or  thereafter. 

110.  Amortization  of  Premium  on  Debt — Cr.  : 

Credit  to  this  account  at  or  after  the  close  of  any  fiscal  period  the 
proportion  of  the  premium  at  which  outstanding  debt  was  issued  which 
is  applicable  to  the  period.  This  proportion  shall  be  determined  accord- 
ing to  a rule,  the  uniform  application  of  which  during  the  interval 
between  the  issue  and  the  maturity  of  any  debt  will  completely  amortize 
or  wipe  out  the  premium  at  which  such  debt  was  issued. 

111.  Miscellaneous  Deductions  from  Income: 

Charge  to  this  account  the  matters  provided  for  in  the  following  sub- 
accounts : 

A.  Loss  on  Operations  of  Others.  Whenever,  in  accordance  with  the 
terms  of  any  contract,  the  corporation  is  bound  to  contribute  toward 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


33 


reimbursement  of  the  losses  resulting  from  the  operations  of  others,  all 
liabilities  accruing  to  the  corporation  from  such  source  shall  be  charged 
to  this  account. 

B.  Amortization  of  Landed  Capital.  Charge  to  this  account  at  the 
close  to  any  fiscal  period  such  portion  of  the  original  money  cost  (esti- 
mated if  not  known)  of  landed  capital  as  is  necessary  to  cover  the 
portion  of  the  life  thereof  expired  during  such  period. 

Note  A. — The  amounts  charged  to  this  account  shall  be  concurrently  credited  to 
Account  No.  30,  “Reserve  for  Amortization  of  Intangible  Capital.” 

Note  B. — When  any  landed  capital  expires  or  is  otherwise  retired  from  service 
(as,  e.  g.,  through  sale)  the  capital  account  or  investment  account  (if  any)  originally 
charged  therewith  shali  be  credited  with  the  amount  originally  charged  ; Account  No. 
30,  “Reserve  for  Amortization  of  Intangible  Capital,”  shall  be  debited  with  all 
amounts  theretofore  credited  to  such  account  in  respect  of  such  landed  capital  so 
going  out  of  service,  the  appropriate  account  shall  be  debited  with  the  proceeds  of 
sale  (if  any),  and  any  necessary  adjustment  shall  be  made  through  the  “Corporate 
Surplus  or  Deficit”  account. 

C.  Other  Contractual  Deductions  from  Income.  Charge  to  this  ac- 
count all  deductions  from  gross  income  which  are  in  the  nature  of  fixed 
charges  and  not  provided  for  otherwise,  such  as  those  required  by  the 
terms  of  some  contract,  agreement,  charter  provision,  law,  or  ordinance. 
Such  deductions  should  not  include  any  appropriations  or  dispositions 
of  income  that  rest  solely  in  the  discretion  of  the  accounting  corporation. 

Note. — Payments  to  sinking  funds  shall  not  be  charged  to  this  account  but  shall 
be  included  in  Account  No.  113,  “Sinking  Fund  Appropriations.” 

CORPORATE  SURPLUS  OR  DEFICIT  ACCOUNT. 

Corporate  Surplus  or  Deficit  Account  Defined  : 

This  account  or  summary  is  the  connecting  link  between  the  income 
account  and  the  balance  sheet.  It  summarizes  the  changes  in  the  cor- 
porate surplus  or  deficit  during  a given  fiscal  period  resulting  from  the 
business  transactions  during  that  period  as  well  as  those  affected  by 
any  disposition  of  net  profits  made  solely  at  the  option  of  the  corpora- 
tion, by  accounting  adjustments  not  properly  attributable  to  the  period, 
or  by  miscellaneous  losses  or  gains  not  provided  for  elsewhere. 

To  this  account  should  be  carried  the  net  balance  of  the  accounts 
forming  the  income  account,  and  in  it  should  be  summarized  all 
optional  appropriations  (including  dividends)  ; miscellaneous  adjust- 
ments due  to  errors  in  accounting  in  prior  fiscal  periods;  profits  from 
the  sale  of  securities  or  other  property;  losses  upon  property  sold  or 
otherwise  retired  and  not  covered  by  reserves,  and  unusual  losses  and 
gains  of  like  nature.  For  these  matters  the  following  accounts  are 
provided;  their  net  balance  added  to  the  net  balance  from  the  income 
account  should  show  the  net  surplus  or  deficit  on  the  date  of  the  balance 
sheet. 

112.  Dividends  on  Outstanding  Stock: 

When  any  dividend  is  declared  upon  any  outstanding  stocks  of  the 
corporation,  the  amount  of  such  dividend  shall  thereupon  be  charged 


34  CLASSIFICATION'  OF  ACCOUNTS,  GAS  CORPORATIONS. 

to  this  account.  All  entries  to  this  account  shall  show  the  amount  of 
stock  upon  which  the  dividend  is  declared  as  well  as  the  amount  thereof. 
If  the  dividend  is  payable  in  anything  other  than  money,  such  thing 
shall  be  described  in  the  entry  with  sufficient  particularity  to  identify 
it,  and  the  actual  money  value  thereof  shall  be  stated  as  the  amount  of 
the  dividend. 

When  any  dividend  is  declared  upon  the  stocks  of  the  corporation 
owned  by  or  held  in  behalf  of  the  corporation,  the  amount  of  such 
dividend  thereon  shall  be  credited  to  this  account.  Entries  of  credits 
to  this  account  shall  be  made  with  the  same  degree  of  particularity  as 
is  prescribed  in  the  preceding  paragraph. 

113.  Sinking  Fund  Appropriations: 

Charge  to  this  account  all  appropriations  to  sinking  funds  and  accre- 
tions to  such  funds  on  account  of  income  from  previous  investments. 
Such  appropriations  should  include:  (1)  direct  payments;  (2)  sums 
equal  to  the  interest  or  dividends  on  securities  issued  or  assumed  by 
the  corporation  and  held  in  sinking  funds;  (3)  income  from  invest- 
ments of  sinking  funds  other  than  securities  issued  or  assumed;  (4)  in- 
come from  cash  or  special  deposits  held  by  trustees  of  sinking  funds. 
All  earnings  of  sinking  funds  and  contributions  to  such  funds  shall  be 
included  in  this  account  whether  such  contributions  are  made  at  the 
option  of  the  corporation  or  are  required  by  the  provisions  of  mort- 
gages, deeds  of  trust,  or  other  contracts. 

114.  Miscellaneous  Deductions  from  Surplus: 

A.  Expenses  Unprovided  for  Elsewhere.  Charge  to  this  account  all 
expenses  not  chargeable  as  a part  of  operating  expenses  or  of  non- 
operating expenses,  such  as  fines  levied  on  the  corporation  for  violation 
of  law,  for  misfeasance,  for  nonfeasance,  etc.,  fines  levied  on  directors, 
officers,  and  other  employees  of  the  corporation  and  assumed  by  it, 
donations  to  funds,  to  churches  and  other  associations,  and  other  like 
expenses  and  outgoes. 

B.  Realized  Depreciation  not  Covered  by  Reserves.  Charge  to  this 
account  the  realized  depreciation  (that  is,  the  difference  between  the 
original  cost  and  the  salvage,  if  any)  on  tangible  capital  retired,  when 
such  depreciation  has  not  been  provided  for  through  a depreciation 
reserve.  This  includes  such  portion  of  the  realized  depreciation  on 
any  physical  property  which  was  installed  prior  to  the  creation  of  the 
reserve  for  accrued  depreciation  as  is  due  to  life  in  service  before  that 
date;  this  portion  may  be  estimated  on  the  basis  of  the  proportion 
which  the  life  in  service  of  the  property  in  question  prior  to  the 
establishment  of  the  reserve  bears  to  its  entire  life  in  service. 

C.  Amortization  Unprovided  for  Elsewhere.  Charge  to  this  account 


35 


CLASSIFICATION-  OF  ACCOUNTS,  GAS  CORPORATIONS. 


when  any  tangible  property  expires  or  is  relinquished,  such  portion  of 
its  cost  as  has  not  been  previously  written  off  or  is  not  covered  by 
Account  No.  30.,  “Reserve  for  Amortization  of  Intangible  Capital.” 
Charge  also  to  this  account  all  optional  amortization,  such  as  that  of 
organization  expenses,  and  assets,  carried  in  Account  No.  C-4,  “Other 
Intangible  Capital.” 

D.  Gifts  to  Controlled  Corporations.  Charge  to  this  account  all  gifts 
made  by  the  corporation  to  its  controlled  corporations,  also  such  por- 
tions of  all  advances  thereto  as  are  not  carried  as  assets. 

E.  Appropriations  to  Reserves.  Charge  to  this  account  all  optional 
appropriations  to  reserves. 


F.  Other  Appropriations  from  Surplus.  Charge  to  this  account  all 
optional  appropriations  made  by  the  corporation  and  not  provided 
for  elsewhere. 


Note.— A complete  analysis  of  this  account  will  be  required 
corporations  to  the  Railroad  Commission. 


in  annual  reports  of 


Gr.  Other  Deductions  from  Surplus.  Charge  to  this  account  all  deduc- 
tions from  surplus  made  to  extinguish  discount  on  stock  outstanding, 
optional  amortization  of  debt  discount  and  expense,  deductions  because 
of  erroneous  accounting  in  prior  fiscal  periods,  and  all  other  deductions 
from  surplus  not  provided  for  elsewhere. 

Note.— -A  complete  analysis  of  this  account  will  be  required  in  annual  reports  of 
corporations  to  the  Railroad  Commission.  annual  reports  of 


115.  Miscellaneous  Additions  to  Surplus  : 

Credit  to  this  account  all  additions  to  surplus  due  to  erroneous 
accounting  in  previous  fiscal  periods,  bad  debts  collected  after  being 
written  off,  profits  arising  from  the  sale  of  securities  or  other  property, 
etc. 

OPERATING  REVENUES— GAS. 

Explanation  : 


Revenue  defined.  By  revenues,  as  the  word  is  used  herein,  are  meant 
ill  amounts  of  money  which  the  corporation  receives  or  becomes  law- 
.ully  entitled  to  recover  for  services  rendered,  for  products  sold,  as 
tross  profits  on  merchandise  sold,  or  as  a return  upon  its  property’ (or 
nterest  in  property).  Revenues  are  classified  as  operating  revenues 
md  non-operating  revenues. 

Operating  revenues  defined.  Operating  revenues  are  those  derived 
rom  the  sale  of  products  and  merchandise,  from  services  rendered, 
nd  from  return  on  property  used  by  the  person  or  corporation  in  its 
wn  operations. 

Non-operating  revenues  defined.  Non-operating  revenues  are  those 
erived  as  a return  upon  the  property  of  the  corporation  in  the  hands 
f others  or  from  its  interests  in  property  in  the  hands  of  others.  They 
lay  be  sub-classified  as  bents,  interest,  dividends,  and  miscellaneous. 


36 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


Revenue  deductions  defined.  Revenue  deductions  include  expenses, 

TAXES,  DEPRECIATION,  and  UNCOLLECTIBLE  BILLS. 

R-l.  Municipal  Street  Lighting — Arc: 

Credit  to  this  account  all  revenue  derived  from  the  lighting  of  streets, 
roads,  parks,  plazas,  etc.,  for  municipal  corporations  by  means  of  gas. 

R-2.  Municipal  Heat,  Power  and  Lighting: 

Credit  to  this  account  all  revenues  derived  from  lighting  municipal 
buildings  by  means  of  gas,  or  from  gas  supplied  for  such  purposes,  or 
for  heat  or  power  in  municipal  buildings  where  such  gas  is  supplied  at 
lighting  rates  and  is  not  separately  measured;  also  all  revenue  derived 
from  municipal  corporations  for  gas  supplied  at  special  heat  or  power 
rates  to  such  corporations  for  the  production  of  heat  and  power;  alsa 
all  revenues  derived  from  supplying  gas  to  municipal  corporations  and 
not  provided  for  in  the  foregoing  account ; also  those  from  the  letting 
of  engines  and  other  gas  equipment  to  such  corporations. 

R-3.  Commercial  Heat,  Power  and  Lighting — Flat  Rate: 

Credit  to  this  account  all  revenue  derived  from  consumers  other  than 
municipal  corporations,  counties  and  states,  for  gas,  heat,  power  and 
lighting  at  flat  rates  per  year,  per  night,  per  hour,  or  other  time  units, 
or  on  any  basis  independent  of  the  quantity  of  gas  supplied. 

R-4.  Commercial  Heat,  Power  and  Lighting — Metered: 

Credit  to  this  account  all  revenues  derived  from  consumers  other 
than  municipal  corporations,  for  measured  gas  supplied  for  gas,  heat, 
power  and  lighting  where  the  total  revenue  is  dependent  on  the  quantity 
of  gas  supplied. 

R-5.  Prepaid  Gas: 

Credit  to  this  account  all  revenue  derived  from  the  sale  of  prepaid 
gas  delivered  through  so-called  ‘‘Prepayment  Meters. ” (See  Account 
No.  28,  “Service  Billed  in  Advance.”) 

R-6.  Other  Gas  Corporations: 

Credit  to  this  account  all  revenues  derived  from  gas  sold  to  other  gas 
corporations,  to  be  by  them  distributed  through  their  own  mains  to 
consumers.  If  any  portion  of  such  gas  is  incidentally  consumed  by 
such  corporations  for  their  own  benefit,  whether  for  light,  heat,  or  power, 
it  shall  be  included  herein  if  not  separately  measured,  or  if  included  in 
the  same  contract  with  that  which  is  distributed  by  them  to  consumers. 

R-7.  Commissions  on  Others'  Gas: 

Credit  to  this  account  all  revenues  accruing  to  the  corporation  for 
distributing  gas  of  other  companies  through  its  pipes  and  selling  same, 
and  for  all  other  services  performed  in  connection  therewith. 

Note. — In  case  the  corporation  distributes  through  its  pipes  the  gas  of  another 
company,  the  corporation  shall  charge  “Cash”  or  the  appropriate  sub-account  (or 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


37 


accounts)  under  “Accounts  Receivable,”  with  the  value  of  the  gas  of  such  other 
company  supplied  by  the  corporation  to  consumers,  and  shall  enter  a corresponding 
credit  to  a clearing  account,  “Gas  Supplied  by  (blank)  Company  and  distributed  by 
this  Corporation,”  (or  “by  blank”),  (naming  the  corporation  keeping  the  account), 
which  account  shall  be  cleared  monthly  by  charging  to  such  clearing  account  the 
amount  necessary  to  balance,  and  crediting  to  the  account  “Commissions  on  Others’ 
Gas”  the  corporation’s  proportion  of  the  total  revenue,  and  to  the  account  of  the 
company  supplying  such  gas  to  the  corporation  that  company’s  proportion  of  such 
total  revenue. 

R-8.  Rent  of  Meters: 

Credit  to  this  account  all  revenues  derived  from  the  renting  of  meters, 
whether  for  use  in  municipal,  commercial  or  miscellaneous  service.  It 
is  not  the  intention  to  require  that  the  difference  between  energy  con- 
sumed and  minimum  rate  (when  consumption  at  regular  rate  is  less 
than  the  agreed  minimum  rate)  be  considered  as  meter  rent. 

R-9.  Breakdown  Service: 

Credit  to  this  account  all  revenues  derived  from  the  insurance  of  a 
supply  of  gas  to  a stipulated  amount  to  concerns  ordinarily  producing 
their  own,  or  procuring  it  from  other  sources  than  the  corporation 
acting  as  insurer. 

R-10.  Joint  Gas  Rent  Revenue: 

When  any  corporation  engages  in  gas  operations  for  the  production 
of  some  of  its  products  for  the  benefit  of  another  or  others  under  an 
arrangement  for  apportioning  the  expense  upon  the  basis  of  the  relative 
amounts  of  benefits  to  the  several  participants  in  the  arrangement,  if 
such  arrangement  provides  for  the  receipt  by  the  corporation  of  any 
profit  or  return  upon  its  property,  such  profit  or  return  upon  property 
shall,  as  it  accrues,  be  credited  month  by  month  to  this  account.  Such 
profit  or  return  must  be  over  and  above  any  provision  for  wear  and 
tear  and  depreciation  of  plant  involved  in  the  said  production,  and  the 
amount  thereof  must  be  as  provided  in  the  arrangement  under  which 
the  joint  production  occurs. 

R-ll.  Other  Miscellaneous  Gas  Revenues: 

Credit  to  this  account  all  revenues  derived  from  others  than  municipal 
corporations  for  the  supply  of  gas  and  from  other  gas  operations  not 
includible  in  any  of  the  foregoing  accounts. 

OTHER  OPERATING  REVENUES. 

R-12.  Rent  of  Gas  Appliances: 

Credit  to  this  account  all  revenue  derived  from  the  letting  of  gas 
engines,  heating  appliances,  lamps,  and  other  gas  apparatus  and  appli- 
ances (except  meters)  to  others  than  municipal  corporations.  Where 
the  contract  of  letting  names  only  a single  consideration  for  both  the 
letting  and  the  maintenance  of  the  appliances  so  let,  the  entire  revenue 
shall  be  included  in  this  account. 


38  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

R-13.  Gas  Merchandise  and  Jobbing  Revenues: 

Credit  to  this  account  all  receipts  from  the  sale  of  gas  merchandise 
and  from  gas  jobbing.  Charge  to  this  account  the  cost  to  the  account- 
ing corporation  of  gas  merchandise  sold,  such  cost  including  transporta- 
tion charges  paid  on  such  goods. 

Credit  also  to  this  account  the  profit  or  commission  accruing  to  the 
corporation  on  all  jobbing  work  performed  by  it  as  agent  under  agency 
contracts,  whereunder  it  undertakes  to  do  jobbing  work  for  another 
for  a stipulated  profit  or  commission  upon  its  actual  expense  for  labor, 
materials  and  supplies. 

Note  A. — In  its  annual  reports  to  the  Railroad  Commission  the  reporting  corpora- 
tion will  be  required  to  analyze  the  credits  and  debits  to  this  account. 

Note  B. — This  account  does  not  include  receipts  from  the  sale  of  superseded 
equipment,  or  of  junk  or  other  scrap  or  salvage. 

R-14.  Sale  of  Residuals  and  By-Products: 

Credit  to  this  account  all  revenue  derived  from  the  sale  of  residuals 
and  by-products.  This  account  shall  be  so  kept  as  to  enable  the  account- 
ing corporation  to  show  in  its  annual  report  to  the  Railroad  Commission 
the  revenue  from  each  separate  commodity. 

R-15.  Steam  Sales  Revenue: 

Credit  to  this  account  all  revenue  derived  from  the  sale  of  steam 
produced  in  or  in  conjunction  with  the  gas  department. 

OPERATING  EXPENSE  ACCOUNTS. 

Definitions  of  Certain  Terms  Used  in  Connection  with  Expense 
Accounts  : 

Except  where  some  other  meaning  is  clearly  specified  in  the  definitions 
of  the  accounts,  the  following  words,  wherever  used  hereunder,  have  the 
meanings  below  stated : 

Cost  means  cash  or  money  cost,  and  not  price  based  on  a term  of 
credit. 

Labor  means  human  services  of  whatever  character. 

Cost  of  labor  includes  wages,  salaries  and  fees  paid  to  persons  for 
their  services. 

Cost  of  materials  and  supplies  includes  all  specifically  assignable 
transportation  charges  incurred  in  obtaining  the  delivery  of  such 
materials  and  supplies  upon  the  premises  of  the  purchaser,  and  cost  of 
any  special  tests  made  thereon  prior  to  their  acceptance;  and  in  case 
the  accounting  person  or  corporation  desires,  it  may  include  a suitable 
proportion  of  store  expenses  (when  the  materials  and  supplies  are 
passed  through  stores)  and  the  cost  of  further  transportation  to  the 
place  of  consumption,  and  a suitable  proportion  of  the  expense  of  the 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


39 


purchasing  department,  in  which  case  a corresponding  credit  shall  be 
made  to  the  suitable  expense  account  as  hereinafter  provided. 

Cost  of  repairs , when  made  by  the  accounting  person  or  corporation, 
includes  cost  of  labor  expended  and  material  consumed,  less  salvage, 

if  any. 

Note. — It  is  not  required  that  the  transportation  element  of  cost  shall  be  assigned 
with  a greater  degree  of  accuracy  than  to  the  nearest  cent  per  unit  of  material  or 
supply.  Where  a single  transportation  item  covers  a multitude  of  things  the  portion 
of  the  expense  not  assigned  to  specific  things  should  be  charged  to  the  same  account 
that  store  expenses  are  charged  to. 

GENERAL  ACCOUNTS. 

Production  Expenses. 

Transmission  Expenses. 

Distribution  Expenses. 

Commercial  Expenses. 

General  and  Miscellaneous  Expenses. 

Taxes. 

Depreciation,  etc. 

Production  Expenses. 

E-l.  Superintendence: 

Charge  to  this  account  the  cost  of  labor  of  the  engineer  in  charge  of 
works  and  his  assistants,  also  day  and  night  foremen  and  station  clerks. 
E-2.  Natural  Gas  Plant  Labor: 

Charge  to  this  account  the  cost  of  all  labor  incurred  in  developing 
natural  gas  from  wells. 

E-3.  Natural  Gas  Plant  Supplies  and  Expenses: 

Charge  to  this  account  the  cost  of  all  material  used  in  the  production 
of  natural  gas  from  wells. 

E-4.  Steam  Plant  Labor: 

Charge  to  this  account  the  cost  of  all  labor  incurred  in  the  production 
of  steam  for  supplying  generators  and  for  operating  all  steam  driven 
apparatus  used  in  gas  generation,  labor  such  as  engineer  in  charge  of 
steam  plant  and  assistants  and  other  labor  about  the  plant. 

E-5.  Steam  Plant  Supplies  and  Expenses: 

Charge  to  this  account  the  cost  of  all  material  and  expenses  in  the 
production  of  steam  for  supplying  generators.  Include  such  supplies 
as  gauge  glasses,  washers,  manhole  gaskets,  shovels,  brooms,  boiler 
compounds,  etc. 

E-6.  Generating  Plant  Labor: 

Charge  to  this  account  the  cost  of  all  labor  in  connection  with  gener- 
ating fuel  oil  gas,  or  producing  water  gas,  wages  of  gasmakers  and 
gasmakers’  assistants,  etc. 


40  CLASSIFICATION"  OF  ACCOUNTS,  GAS  CORPORATIONS. 

E-7.  Generating  Plant  Supplies  and  Expenses: 

Charge  to  this  account  all  supplies  and  expenses  in  generating  fuel 
oil  gas  or  producing  water  gas,  including  all  material  and  supplies  of 
this  character  with  the  exception  of  fuel. 

E-8.  Fuel  for  Steam  : 

Charge  to  this  account  the  cost  of  fuel  oil  or  coal  used  in  firing  boilers 
in  production  of  steam.  This  should  include  the  cost  of  freight  and 
labor  unloading. 

E-9.  Oil  or  Coal  for  Gas: 

Charge  to  this  account  the  cost  of  all  oil  or  coal  used  in  the  generators 
for  production  of  oil  or  coal  gas.  This  should  include  the  cost  of  freight 
and  labor  unloading. 

E-10.  Miscellaneous  Labor  at  Works: 

Charge  to  this  account  the  cost  of  general  labor  in  and  about  the 
works,  not  specifically  engaged  in  the  manufacture  of  gas,  such  as  that 
of  watchmen,  janitors  and  messengers,  laborers  employed  in  cleaning 
up  yard  and  cleaning  out  refuse  piles. 

E-ll.  Miscellaneous  Supplies  and  Expenses  at  Works: 

Charge  to  this  account  all  supplies  and  expenses  at  works  not  other- 
wise provided  for. 

E-12.  Gas  from  Other  Sources: 

Charge  to  this  account  the  cash  purchase  price  of  gas  bought  from 
other  companies  for  distribution  through  the  system  of  the  accounting 
corporation,  also  the  corporation’s  proportion  of  the  cost  of  production 
(including  maintenance  but  not  including  any  pure  rent  or  return  upon 
the  value  of  the  property  employed)  of  gas  produced  by  another  con- 
cern for  the  use  of  the  corporation  under  any  joint  arrangement  for 
the  sharing  of  expense  upon  the  basis  of  the  relative  amount  of  benefits 
to  the  several  participants. 

E-13.  Repairs  to  Gas  Wells  and  Derricks: 

Charge  to  this  account  the  cost  of  repairs  to  boilers,  engines,  derricks, 
casings,  driller’s  tools  and  all  other  necessary  equipment  used  in  con- 
nection therewith. 

E-14.  Repairs  to  Gas  Plant  Buildings  and  General  Structures: 

Charge  to  this  account  the  cost  of  repairs  to  excavations,  permanent 
foundations,  drainage,  gas  and  water  pipes  and  connections,  grading 
grounds  and  furniture  and  fixtures  when  permanently  attached  to  and 
made  a part  of  the  buildings. 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS.  41 

E-15.  Repairs  to  Gas  Holders: 

Charge  to  this  account  cost  of  all  repairs  to  all  holders  at  works  and 
outlying  stations,  including  tanks,  foundations,  holders,  framework, 
guides,  pulleys,  etc.,  and  inlet  and  outlet  valves  of  such  holders. 

E-16.  Repairs  to  Furnaces,  Boilers  and  Accessories: 

Charge  to  this  account  the  cost  of  repairs  to  all  furnaces,  boilers,  and 
boiler  apparatus  and  accessories  devoted  to  the  production  of  steam  for 
use  in  producing  gas  and  in  furnishing  motive  power  in  gas  works  and 
stations.  This  includes  repairs  to  boilers  and  valves  thereto  attached, 
appurtenant  furnaces  and  grates,  and  flues  leading  to  smokestacks  and 
chimneys,  and  the  specially  provided  foundations  and  settings  of  such 
boilers  and  appurtenances;  also  iron  smokestacks.  It  also  includes 
repairs  to  mechanical  stokers  and  other  like  apparatus  for  regulating 
the  supply  of  fuel,  etc.,  feed  and  hot  water  pipes,  heaters  and  econo- 
mizers, injectors,  filters,  feed  pumps,  blower  engines,  water  pipes,  steam 
traps,  drains  and  separators,  and  pipes  for  conducting  steam  from  the 
boiler  to  the  engine,  to  condensers,  or  to  gas  generators.  It  does  not 
include  repairs  to  steam  pipes  whose  primary  purpose  is  the  heating 
of  buildings. 

E-17.  Repairs  to  Gas  Generators: 

Charge  to  this  account  the  cost  of  all  repairs  to  generators  devoted 
to  the  production  of  gas  from  oil.  This  includes  repairs  to  shells,  lining 
and  checking,  valves,  stacks,  etc.,  specially  provided  foundations  and 
settings,  seals,  superheaters  and  piping  connected  therewith. 

E-18.  Repairs  to  Purification  Apparatus: 

Charge  to  this  account  the  cost  of  all  repairs  to  purification  apparatus, 
such  as  condensers,  washers,  scrubbers,  purifiers,  tar  extractors,  etc., 
and  their  auxiliary  apparatus  and  piping,  including  the  cost  of  repairs 
to  specially  provided  foundations  and  settings. 

E-19.  Repairs  to  Gas  Plant  Equipment: 

Charge  to  this  account  the  cost  of  all  repairs  to  steam  engines  devoted 
to  use  as  prime  movers  in  gas  wrorks.  This  includes  cost  of  repairs  to 
specially  provided  foundations  and  settings  of  such  engines.  The 
engine,  whether  reciprocating  or  rotary  (such  as  steam  turbines)  shall 
be  considered  to  include  the  throttle  or  inlet  valve  and  the  governor; 
also  condensers  and  air  pumps,  but  not  the  steam  pipe  leading  from  the 
boiler. 

E-20.  Repairs  to  Gas  Engines: 

Charge  to  this  account  the  cost  of  all  repairs  to  gas  engines  devoted 
to  use  as  prime  movers  in  gas  works  and  stations.  This  includes  cost 


42 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


of  repairs  to  specially  provided  foundations  and  settings  of  such  engines. 
The  engine  includes  the  inlet  valve  and  governor  and  ignition  and 
starting  apparatus,  but  not  the  pipe  leading  from  the  gas  boiler. 

E— 21.  Repairs  to  Miscellaneous  Gas  Plant  Equipment  : 

Charge  to  this  account  cost  of  all  repairs  to  miscellaneous  power 
plant  equipment  at  gas  works,  which  is  not  includible  in  any  of  the 
foregoing  accounts.  This  includes  repairs  to  such  mechanical  apparatus 
as  belts,  pulleys,  hangers,  countershafts  and  other  apparatus  interme- 
diary between  the  prime  mover  and  the  apparatus  operated,  cranes, 
hoists,  etc.,  and  machine  tools  and  such  other  tools  at  power  plants  as 
are  proper  to  be  capitalized,  etc. 

E-22.  Repairs  to  Water  Gas  Sets  and  Accessories: 

Charge  to  this  account  the  cost  of  all  repairs  to  gas  sets  and  acces- 
sories, devoted  to  the  production  of  water  gas,  including  cost  of  repairs 
to  specially  provided  foundations  and  settings  for  such  sets.  This 
account  includes  cost  of  repairs  to  not  only  generators,  carburetors, 
superheaters,  seals  and  piping  connected  therewith,  etc.,  but  also  blast 
apparatus,  oil  and  steam  supplying  apparatus,  oil  and  steam  heaters, 
etc.  It  does  not  include  cost  of  repairs  to  pipas  whose  primary  purpose 
is  the  warming  of  buildings. 

E-23.  Repairs  to  Accessory  Equipment  at  Works: 

Charge  to  this  account  the  cost  of  all  repairs  to  equipment  at  works 
and  holder  stations,  which  is  not  includible  in  any  of  the  foregoing 
accounts.  This  includes  cost  of  repairs  to  exhausters,  station  meters, 
governors,  etc.,  apparatus  for  charging  retorts,  conveyors  for  disposing 
of  coke  and  other  products  and  residuals,  tar  and  ammonia  apparatus, 
pumps,  fuel  oil,  tanks  and  pipe  line. 

E-24.  Repairs  to  Miscellaneous  Production  Equipment  : 

Charge  to  this  account  the  cost  of  all  repairs  to  miscellaneous  equip- 
ment used  in  the  production  of  gas  energy  which  is  not  includible  in 
any  of  the  foregoing  accounts.  This  includes  cost  of  repairs  to  tools 
and  appliances  (working  stock  only),  horses,  wagons,  harness,  autos, 
motorcycles,  furniture  and  fixtures,  roads,  trestles,  bridges,  etc.,  where 
used  specially  in  the  production  of  gas. 

Note. — Where  any  item  of  miscellaneous  gas  plant  equipment  is  jointly  used  in 
transmission,  distribution  or  other  departments,  the  cost  of  such  repairs  shall  be 
included  in  appropriate  sub-accounts  under  ‘ General  Expenses.” 

Transmission  Expenses. 

E-25.  Transmission  Pumping: 

Charge  to  this  account  the  cost  of  pumping  gas  through  mains  to  the 
distribution  system,  including  inspection  and  regulation  of  booster 
governors. 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


43 


E-26.  Patrolling  and  Inspecting: 

Charge  to  this  account  all  labor  engaged  in  patrolling  and  inspecting 
the  transmission  system  between  the  storage  holder  and  distribution 
system,  including  testing  of  lines  and  repairs  of  minor  character  made 
by  patrolmen. 

E-27.  General  Labor  and  Supplies: 

Charge  to  this  account  the  cost  of  material  and  labor  expended  in 
transmission  of  gas  not  includible  in  the  foregoing  accounts. 

E-28.  Repairs  to  Transmission  Mains: 

Charge  to  this  account  the  cost  of  repairs  of  high  pressure  transmis- 
sion mains  from  production  plant  to  distribution  system. 

E-29.  Repairs  to  Buildings  and  General  Structures: 

Charge  to  this  account  the  cost  of  material  used  and  labor  expended 
in  erecting  buildings  to  be  used  for  housing  boosters  and  regulators, 
including  cost  of  repairs  to  excavations,  permanent  foundations,  drain- 
age, gas  and  water  pipes  and  connections,  grading  grounds  and  furni- 
ture and  fixtures  when  permanently  attached  to  and  made  a part  of 
the  building. 

E-30.  Repairs  to  Boosting  Apparatus  and  Regulators  : 

Charge  to  this  account  the  cost  of  all  repairs  to  boosting  equipment, 
including  blowers,  compressors,  engines,  motors  and  connections,  regu- 
lators and  governors,  and  their  specially  provided  foundations  and 
settings. 

Note. — Do  not  include  district  regulators  installed  in  distribution  system. 

•E-31.  Repairs  to  Miscellaneous  Transmission  Equipment: 

Charge  to  this  account  the  cost  of  repairs  to  all  miscellaneous  equip- 
ment used  in  transmission  of  gas  which  is  not  includible  in  any  of  the 
foregoing  accounts.  This  includes  cost  of  repairs  to  tools  and  appli- 
ances (working  stock  only),  horses,  wagons  and  harness,  autos,  motor- 
cycles, bicycles,  furniture  and  fixtures,  roads,  trestles  and  bridges,  etc., 
where  used  specifically  in  the  transmission  of  gas. 

Note. — Where  any  items  of  miscellaneous  transmission  equipment  are  jointly  used 
with  production,  distribution  or  other  departments,  the  cost  o?  such  repairs  shall 
he  included  in  appropriate  sub-accounts  under  “General  Expenses.” 

Distribution  Expenses. 

E-32.  Superintendence: 

Charge  to  this  account  the  cost  of  all  labor  employed  in  superintend- 
ing the  operation  of  the  street  department,  fitting  and  repair  shops, 
including:  the  salaries  of  superintendents,  foremen,  clerks,  timekeepers, 
messengers,  watchmen,  and  janitors  employed  in  the  distribution  depart- 
ment ; also  include  personal  and  traveling  expense,  automobile,  livery 
and  stable  expenses,  etc. 


44 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


E-33.  Setting  and  Removing  Meters  and  Regulators: 

Charge  to  this  account  the  cost  of  all  supplies  consumed  and  all 
expenses  incurred  in  connection  with  the  operation  of  service  regulators 
and  consumers’  meters.  This  includes  such  matters  as  setting  and 
removing  such  regulators  and  meters,  connecting  and  disconnecting 
services  and  the  like. 

E-34.  Inspecting  and  Patrolling: 

Charge  to  this  account  the  cost  of  patrolling,  testing,  etc.,  of  gas 
mains,  including  minor  repairs  made  by  patrolmen,  etc. 

E-35.  Gas  Meter  Operations: 

Charge  to  this  account  the  salaries  and  expenses  of  superintendents 
and  clerks  in  the  meter  bureau,  and  also  that  portion  of  the  salaries  of 
the  engineering  staff  of  the  corporation  assignable  to  this  work;  also 
the  cost  of  light,  heat,  ice  water  and  other  supplies  and  expenses  in 
connection  with  the  meter-testing  bureau ; and  the  cost  of  testing  meters 
on  the  consumers’  premises. 

E-36.  Commercial  Arc  Labor: 

Charge  to  this  account  the  cost  of  labor  employed  in  trimming  and 
inspecting  arc  lamps  on  private  consumers’  premises  and  in  municipal 
buildings, 

E-37.  Commercial  Arc  Supplies  and  Repairs: 

Charge  to  this  account  the  cost  of  all  supplies  (such  as  carbons, 
globes,  etc.),  for  arc  lamps  on  private  consumers’  premises;  also  charge 
to  this  account  the  cost  of  keeping  in  repair  private  consumers’  arc 
lamps  and  those  in  municipal  buildings ; including  such  matters  as  set- 
ting and  removing  lamps,  repairing  parts,  changing  for  repairs  and 
adjustments  and  testing  during  adjustment  and  after  repairs. 

E-38.  Commercial  Lamp  Installations  and  Renewals: 

Charge  to  this  account  the  cost  of  the  first  installation  of  lamps  on 
consumers’  premises  (including  cartage  and  delivery  expenses),  unless 
consumer  is  charged  for  the  first  installation  or  unless  it  is  proper  to 
charge  such  first  installation  to  capital  (see  Account  No.  C-29)  ; also 
charge  to  this  account  the  cost  of  renewing  lamps  on  consumers’  prem- 
ises (including  cartage  and  delivery  expenses)  and  cost  of  photometer- 
ing lamps.  Credit  to  this  account  any  rebate  received  for  the  return  of 
stubs,  or  allowances  relating  thereto. 

E-39.  Inspection  and  Repairs  of  Consumers’  Installations: 

Charge  to  this  account  the  cost  of  inspection  of  consumers’  premises, 
including  such  matters  as  the  charge  for  municipal  certificates,  charge 
for  Board  of  Fire  Underwriters’  inspection  certificates,  and  that  portion 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


45 


of  the  salaries  and  expenses  of  the  engineering  staff  or  of  departments 
other  than  the  distribution  department  engaged  in  technical  work 
properly  assignable  to  this  account.  Also  charge  to  this  account  the 
cost  of  all  labor  and  material  furnished  to  consumers  for  inside  work 
without  special  charge,  including  such  matters  as  attention  to  com- 
plaints or  to  improving  the  character  of  the  service,  replacing  or  repair- 
ing fixtures  or  appliances,  moving  appliances  from  place  to  place  in 
houses  and  reconnecting  the  same,  etc. 

E-40.  Municipal  Street  Arc  Labor*. 

Charge  to  this  account  the  cost  of  labor  employed  in  cleaning  and 
lighting  street  lamps,  and  extinguishing  street  lights ; in  inspecting  and 
supervising  the  street  lighting  district;  in  reporting  on  relights  and 
discontinues,  and  watching  the  hours  of  lighting  and  extinguishing ; 
and  the  incidental  expenses  of  street  lamp  operating. 

E-41.  Municipal  Street  Arc  Supplies: 

Charge  to  this  account  the  cost  of  material  and  labor  consumed  in 
fitting  up  new  lamp  posts,  refitting  standpipes,  clearing  services,  cutting 
off  services,  recaulking  columns,  removing  posts,  resetting  posts,  refit- 
ting columns,  straightening  posts,  and  all  other  work  of  a similar  char- 
acter necessary  to  maintain  the  street  lighting  system  to  the  degree  of 
efficiency  required  by  the  city;  also  repaving  openings  made  necessary 
by  such  work. 

E-42.  General  Labor  and  Supplies: 

Charge  to  this  account  the  cost  of  labor  and  material  expended,  not 
includible  in  the  foregoing  accounts. 

E-43.  Repairs  to  Distribution  Mains: 

Charge  to  this  account  the  cost  of  all  mains  in  place.  This  includes 
pipe  lines  from  holders  or  trunk  line  valves  to  beginning  of  services, 
including  cost  of  trenching,  placing  pipe,  filling  trenches,  and  restoring 
surface  to  its  former  condition,  or  to  that  required  by  the  municipal 
authorities. 

E-44.  Repairs  to  Gas  Services: 

Charge  to  this  account  the  cost  of  repairs  of  the  corporation’s  prop- 
erty in  service  pipes  and  appurtenances  in  or  leading  to  consumers’ 
premises.  This  includes  cost  of  repairs  to  material  in  place,  cost  of 
trenching  for  placing  services,  and  of  filling  trenches  and  restoring 
surface  to  proper  condition. 

E-45.  Repairs  to  Gas  Meters  and  Regulators: 

Charge  to  this  account  the  cost  of  repairs  to  all  meters,  district  and 
house  type  regulators  installed  for  determining  the  amount  of  gas 
delivered  to  consumers.  The  cost  of  the  original  testing  and  the  setting 


46 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


of  each  meter  will  be  charged  to  this  account  unless  it  is  the  policy  of  the 
accounting  corporation  to  capitalize  the  original  setting  of  meters. 

Note  A. — Do  not  charge  repairs  to  station  regulators  to  this  account. 

Nofe  B. — Cost  of  removing  such  meters  and  of  setting  other  meters  substituted  for 
them  shall  be  charged  to  this  account. 

E-46.  Repairs  to  Municipal  Street  Lighting  Systems: 

Charge  to  this  account  the  cost  of  repairs  of  the  corporation’s  prop- 
erty in  the  lamps,  posts,  and  auxiliary  apparatus  and  appliances  used 
in  lighting  streets  for  a municipal  corporation.  Such  cost  includes  not 
only  cost  of  material,  but  also  cost  of  first  setting  and  coupling  up.  It 
does  not  include  cost  of  removal  or  change  of  position. 

E-47.  Repairs  to  Commercial  Arc  Lamps: 

Charge  to  this  account  the  cost  of  repairs  to  all  commercial  arc 
lamps  supplied  to  consumers  (including  municipal  buildings)  where 
such  lamps  have  an  expectancy  of  life  in  service  of  more  than  one  year. 

Note. — Meters  supplied  to  consumers  are  provided  for  in  a foregoing  account 
and  should  not  be  included  herein. 

E-48.  Repairs  to  Miscellaneous  Distribution  Equipment  : 

Charge  to  this  account  the  cost  of  repairs  to  all  miscellaneous  equip- 
ment used  in  the  distribution  of  gas  which  is  not  includible  in  any  of 
the  foregoing  accounts.  This  includes  tools  and  appliances  (working 
stock  only),  horses,  wagons,  and  harness,  autos,  motorcycles,  bicycles, 
furniture  and  fixtures,  roads,  trestles,  and  bridges,  etc.,  where  used 
specifically  in  the  distribution  of  gas. 

Note. — Where  any  items  of  miscellaneous  distribution  equipment  are  jointly^ 
used  with  production,  transmission  or  other  departments,  the  cost  of  such  repairs  shall 
be  included  in  appropriate  sub-accounts  under  “General  Expenses.” 

Commercial  Expenses. 

E-49.  New  Business  Expenses: 

Charge  to  this  account  the  cost  of  all  material  and  labor  expended  in 
getting  new  business.  This  includes  the  cost  of  advertising,  printing 
posters,  handbills,  commissions  paid  canvassers,  solicitors,  and  dealers 
for  introduction  and  sale  of  gas  appliances,  etc.,  also  salaries  of  adver- 
tising manager,  collectors,  solicitors,  together  with  their  personal  ex- 
penses, livery,  etc.,  and  costs  of  demonstrations  and  exhibitions. 

E-50.  Free  Installation  Expenses: 

Charge  to  this  account  the  cost  of  all  material  and  labor  expended  in 
furnishing  free  house  piping,  free  connection  of  appliances,  unless  the 
cost  of  such  services  be  paid  for  by  the  consumers. 

E-51.  Commercial  Department  Salaries  and  Expenses: 

Charge  to  this  account  the  cost  of  keeping  the  accounts  of  consumers, 
including  a proportion  of  the  salaries  and  expenses  of  the  general  officer 
and  assistants  in  charge  of  the  commercial  department,  and  salaries  of 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


47 


bookkeepers  and  all  clerks  in  the  accounting  department,  having  to  do 
with  consumers’  accounts.  This  covers  all  expenses  incurred  in  deter- 
mining the  amount  of  sales,  and  in  keeping  the  accounts  of  such  sales 
and  collections  as  are  not  includible  in  the  accounts  of  indexing  and 
collection  divisions ; also  rent  of  offices. 

E-52.  Commercial  Department  Indexing  : 

Charge  to  this  account  the  cost  of  reading  or  indexing  meters,  includ- 
ing indexers’  lamps;  also  badges  and  car  fare  and  expenses  of  indexers, 
etc. 

E-53.  Commercial  Department  Collections: 

Charge  to  this  account  the  expense  of  the  collection  bureau,  including 
collectors’  salaries  or  commissions,  badges,  car  fare,  etc. 

E-54.  Miscellaneous  Commercial  Expenses: 

Charge  to  this  account  all  expenses  for  salaries  and  wages  and  ex- 
penses not  includible  in  any  of  the  foregoing  accounts. 

General  and  Miscellaneous  Expenses. 

E-55.  Salaries  of  General  Officers  : 

Charge  to  this  account  the  salaries  of  the  chairman  of  the  board, 
president,  vice-president,  treasurer,  secretary,  comptroller,  general  audi- 
tor, general  manager,  assistant  general  manager,  chief  engineer,  general 
superintendent,  and  all  other  officers  whose  jurisdiction  extends  to  the 
entire  system  and  whose  services  can  not  be  satisfactorily  allocated  to 
the  several  departments. 

E-56.  Salaries  of  General  Office  Clerks  : 

Charge  to  this  account  the  salaries  and  wages  of  general  office  audi- 
tors, bookkeepers,  cashiers,  paymasters,  stenographers,  clerks  employed 
in  counting  cash,  and  all  other  clerks  employed  in  the  general  office. 

Note. — Cost  of  labor  of  clerks  in  the  commercial  department  shall  be  charged  to 
account  applicable  under  “Commercial  Expenses.” 

E-57.  General  Office  Supplies  and  Incidental  Expenses: 

Charge  to  this  account  the  cost  of  office  supplies,  repairs  of  office 
furniture,  and  renewals  of  such  furniture  as  has  not  been  capitalized; 
wages  of  janitors,  porters  and  messengers;  cost  of  telegrams  and  of 
any  special  telephone  service;  traveling  and  incidental  expenses  of 
general  officers  and  other  general  office  employees;  and  all  other  miscel- 
laneous expenses  of  general  offices,  also  rent  of  general  office  buildings. 
Office  expenses  of  departmental  officers  must  be  charged  to  the  proper 
departmental  accounts. 


48  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

E-58.  Law  Expenses — General: 

Charge  to  this  account  all  law  expenses  except  those  incurred  in  con- 
nection with  the  defense  and  settlement  of  injury  and  damage  claims. 
Include  also  salaries  and  expenses  of  counsel,  solicitors  and  general 
attorneys,  their  clerks  and  attendants,  etc.  Also  include  the  cost  of 
law  books,  printing  briefs,  legal  forms,  testimony,  reports,  fees  and 
retainers  of  general  counsel  and  attorneys,  court  costs,  and  payments 
of  specific  notarial  and  witness  fees,  expenses  of  taking  depositions  and 
other  general  law  and  court  expenses;  expenses  of  arbitrators  of  dis- 
puted points  will  also  be  included  in  this  account. 

E-59.  Railroad  Commission  Expenses: 

Charge  to  this  account  all  fees,  retainers  and  expenses  of  counsel, 
solicitors,  attorneys,  clerks,  attendants,  expert  witnesses  and  others 
whose  services  are  secured  in  the  defense  and  prosecution  of  all  petitions 
and  other  transactions  before  the  Railroad  Commission  of  the  State  of 
California,  Expenses  which  are  made  necessary  by  rules,  regulations 
and  orders  of  the  Commission,  as  improvements  of  service,  additional 
inspections,  etc.,  will  not  be  charged  to  this  account,  but  to  the  appro- 
priate departmental  operating  expense  account. 

E-60.  Injuries  and  Damages: 

Charge  to  this  account  all  damages  to  or  destruction  of  property  other 
than  that  owned  by  the  corporation,  including  the  cost  of  restoring  the 
property  less  insurance  or  legal  damages  allowed,  and  with  all  expense 
incident  to  injury  and  death  of  employees  and  other  persons  for  whose 
injury  or  death  the  corporation  is  held  liable  or  in  the  settlement  of 
which  claim  allowances  are  made.  This  embraces  judgment  for  dam- 
ages and  plaintiff’s  court  costs;  proportion  of  salaries  and  expenses  or 
fees  of  physicians  and  surgeons,  expense  of  undertakers,  nurses  and 
hospital  expenses;  transportation  of  injured  persons;  medical  and 
surgical  appliances;  contributions  to  hospitals;  and  wages  and  salaries 
paid  to  employees  while  disabled.  The  salaries  and  expenses  of  the 
corporation’s  claim  agents,  adjusters  and  their  assistants  will  be  charged 
to  this  account.  The  compensation  of  general  solicitors  and  counsel, 
or  other  attorneys  of  the  corporation,  while  engaged  in  the  defense 
and  settlement  of  damage  suits,  will  also  be  included  in  this  account. 
If  it  is  desired  to  open  an  injuries  and  damages  reserve,  and  to  make 
charges  against  operating  expenses  on  account  of  reserve,  and  to  make 
charges  against  operating  expenses  on  account  of  the  injuries  and 
damages  on  some  arbitrary  basis,  the  amount  so  charged  shall  be  cred- 
ited to  the  4 ‘Injuries  and  Damages”  reserve  and  the  actual  expenditure 
for  the  purposes  above  enumerated  shall  be  charged  against  such  reserve 
account. 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


49 


Corporations  are  at  liberty  to  subdivide  this  account  to  show  the 
following  expenses : 

Injuries  to  Persons. 

Damages  to  Property. 

Where  such  subdivisions  are  not  made,  the  charge  to  this  account 
should  be  so  made  as  to  admit  of  separation  over  two  such  subdivisions 
when  called  for  by  the  Railroad  Commission. 

E-61.  Relief  Department  and  Expenses  : 

Charge  to  this  account  pensions  paid  to  retired  employees  or  represen- 
tatives of  former  employees  and  expenses  in  connection  therewith, 
salaries  and  expenses  incurred  in  conducting  a relief  department,  and 
contributions  made  to  such  departments. 

E-62.  Gas  Franchise  Requirements  : 

Charge  to  this  account  the  cost  of  all  service  and  materials  and  sup- 
plies furnished  to  municipal  corporations  in  compliance  with  franchise 
requirements  and  for  which  no  payments  are  received  by  the  corpora- 
tion ; also  all  direct  expense,  such  as  paving  and  other  like  matters 
incurred  in  compliance  with  such  requirements  and  for  which  no  reim- 
bursement is  received  by  the  corporation. 

E-63.  Other  General  Expenses  : 

Charge  to  this  account  such  incidental  expenses  as  are  not  provided 
for  in  the  foregoing  accounts,  such  as  cost  of  publishing  notices  of 
stockholders’  meetings,  of  election  of  directors,  annual  reports  in  news- 
papers, and  of  dividends  declared;  and  fees  and  expenses  paid  to 
directors. 

E-64.  Insurance: 

Charge  to  this  account,  monthly,  proportion  of  insurance  premiums 
paid  insurance  companies  for  fire,  fidelity,  boiler,  casualty,  burglary 
and  other  insurance. 

Note. — In  their  reports  to  the  Railroad  Commission,  corporations  will  be  required 
to  report  the  charges  made  to  this  account  for  the  various  kinds  of  insurance,  and 
for  self-insurance. 

E-65.  Repairs  to  General  Structures: 

Charge  to  this  account  the  cost  of  repairing  all  buildings  and  other 
structures  of  a permanent  character  devoted  to  general  corporate  pur- 
poses, not  restricted  to  gas  operations  and  not  includible  in  any  of  the 
departmental  accounts ; also  repair  of  all  fixtures  permanently  attached 
thereto  and  made  a part  thereof,  such  as  water  pipes  and  fixtures,  steam 
pipes  and  fixtures  for  warming,  ventilating,  gas  pipes  and  fixtures  for 
lighting,  etc.,  signaling,  etc.,  elevators,  etc.,  and  the  engines  and  motors 
specially  provided  for  operating  them,  furnaces,  boilers,  etc.,  spe- 
cially provided  for  producing  steam  for  such  engines  and  for  heating, 


50  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

gas  generators  specially  provided  for  producing  gas  for  lighting  such 
buildings,  etc.  This  account  includes  such  piers  and  other  foundations 
for  machinery  and  apparatus  as  are  designed  to  be  as  permanent  as  the 
buildings  in  (or  in  connection  with)  which  they  are  constructed,  and  to 
outlast  the  first  machinery  installed  and  mounted  therein. 

Note  A. — Among  such  buildings  may  be  mentioned  general  office  buildings,  general 
shop  buildings,  general  storehouses,  general  stable  buildings,  etc.  Where  general 
offices,  shops,  stables,  etc.,  are  in  buildings  includible  in  a departmental  account,  as, 
e.  g.,  in  a power  station  building,  no  part  of  the  cost  of  such  building  shall  be  charged 
to  this  account.  This  account  is  provided  for  structures  of  a general  or  miscellaneous 
character  not  assignable  to  any  particular  department. 

Note  B. — When  furnaces  and  boilers  are  used  primarily  for  furnishing  steam  for 
some  particular  department  and  only  incidentally  for  furnishing  steam  for  heating  a 
general  building  and  operating  the  equipment  therein,  the  entire  cost  of  repairing 
such  furnaces  and  boilers  shall  be  charged  to  the  appropriate  departmental  account. 

E-66.  Repairs  to  General  Equipment — Office  Equipment  : 

Charge  to  this  account  the  cost  of  repairing  all  equipment  of  general 
offices,  such  as  desks,  chairs,  tables,  movable  safes,  filing  cases,  type- 
writers, adding  machines,  drafting  room  equipment,  and  other  like 
office  appliances  and  equipment;  also  engineering  instruments,  if  it  is 
not  desired  to  distribute  such  expenses. 

E-67.  Repairs  to  General  Equipment— Shop  Equipment: 

Charge  to  this  account  the  cost  of  repairing  all  equipment  specially 
provided  for  general  shops,  such  as  furnaces,  boilers,  gas  producers, 
engines,  gas  generators,  and  other  power  apparatus  used  in  operating 
machinery  in  such  shops;  machine  tools,  cranes,  hoists,  shafting,  belts 
and  like  shop  equipment ; also  such  smithing  equipment  in  general  shops 
as  is  used  principally  for  other  general  purposes  than  shoeing  horses 
and  repairing  vehicles,  except  as  provided  for  in  appropriate  clearing 
accounts  hereinafter  described. 

Note. — If  the  accounting  corporation  so  desires,  this  account  may  be  eliminated 
from  operating  expenses,  and  the  cost  of  repairs  of  equipment  listed  in  this  account 
may  be  charged  to  Clearing  Account,  “Shop  Expenses.” 

E-68.  Repairs  to  General  Equipment — Store  Equipment  : 

Charge  to  this  account  the  cost  of  repairing  all  equipment  of  general 
store  structures,  such  as  movable  counters,  movable  shelving  and  other 
movable  equipment  of  like  nature,  carts,  barrows,  trucks,  etc.,  and  other 
apparatus  and  appliances  used  in  handling  materials  and  supplies. 

Note  A. — Counters,  shelving  and  the  like  which  are  permanently  attached  to  the 
structure  shall  be  charged  to  Account  No.  E— 65,  “Repairs  to  General  Structures,”  and 
not  to  this  account. 

Note  B. — If  the  accounting  corporation  so  desires,  this  account  may  be  eliminated 
from  operating  expenses,  and  the  cost  of  repairs  of  equipment  listed  in  this  account 
may  be  charged  to  Clearing  Account,  “Supply  Expenses.” 

E-69.  Repairs  to  General  Equipment — Stable  and  Garage  Equip- 
ment: 

Charge  to  this  account  the  cost  of  repairing  all  equipment  of  general 
stables,  and  garages,  including  harness,  drays,  wagons,  automobiles,  and 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS.  51 

other  vehicles,  equipment  of  shoeing  shops,  harness  repair  shops,  vehicle 
repair  shops,  etc. 

Note. — The  accounting  corporation  may,  if  it  so  desires,  eliminate  this  account 
from  operating  expenses,  and  charge  the  cost  of  repair  of  the  equipment  listed  herein 
to  proper  clearing  account  as  hereinafter  provided. 

E-70.  Repairs  to  General  Equipment — Miscellaneous: 

Charge  to  this  account  the  cost  of  repairing  all  other  equipment,  such 
as  laboratory  equipment  and  other  tools  and  instruments  and  miscel- 
laneous equipment  not  includible  in  the  foregoing  accounts  under 
Repairs  to  General  Equipment,  except  as  provided  for  in  clearing 
accounts  hereinafter  described. 

E-71.  Repairs  to  Telephone  Lines  : 

Charge  to  this  account  the  cost  of  repairing  telephone  lines  for  the 
use  of  the  entire  system.  These  charges  should  include  the  cost  of 
repair  wires  and  insulators,  crossarms,  poles  (where  devoted  solely  to 
supporting  telephone  lines,  telephone  instruments,  etc.). 

E-72.  Repairs  to  Roads,  Trestles  and  Bridges  : 

Charge  to  this  account  the  cost  of  repairing  roads,  trestles,  bridges 
and  tramways  required  for  the  transportation  of  machinery  and  sup- 
plies, or  the  operation  of  the  corporation. 

Note. — Do  not  include  in  this  account  repairs  to  any  roads,  trestles,  or  bridges 
which  may  be  solely  for  the  use  of  Production,  Transmission  or  Distribution  systems. 

E-73.  Gas  Expenses  Transferred — Cr.  : 

Credit  to  this  account  the  proportion  of  operating  expenses  (includ- 
ing depreciation  and  other  amortization,  as  well  as  repairs)  chargeable 
to  other  coordinate  departments  (such  as  electric  or  street  railroads) 
within  the  same  corporation,  but  defrayed  in  the  first  instance  by  the 
gas  department. 

Note. — Do  not  credit  to  this  account  any  allowance  in  the  nature  of  rent  or  return 
upon  the  cost  or  value  of  property. 

E-74.  Joint  Operating  Expenses— Cr.  : 

When  any  general  'or  miscellaneous  operating  expenses  are  assumed 
by  the  accounting  corporation  for  the  joint  benefit  of  itself  and  other 
gas  corporations  under  an  arrangement  for  apportioning  such  expense, 
the  portion  chargeable  to  others  should  be  credited  to  this  account. 
The  portion  so  credited  must  not  include  any  allowance  for  profit  or 
return  upon  the  value  of  the  property. 

Note. — Bills  rendered  for  joint  expenses  should  show  the  expenses  in  detail  and  the 
debtor  corporation  should  distribute  the  total  amount  to  its  primary  expense  accounts. 

E-75.  Undistributed  Adjustments — Balance  : 

At  least  once  a year  an  inventory  of  materials  and  supplies  and  of 
tools  shall  be  taken,  and  the  difference  between  the  inventories  and  the 
ledger  balances  shall  be  debited  or  credited  to  this  account  in  case  it  can 
not  be  assigned  to  specific  accounts  as  provided  under  Account  No.  9, 


52 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


“Materials  and  Supplies.”  Credit  to  this  account  all  discounts  recov- 
ered through  the  prompt  payment  of  bills  for  materials  and  supplies 
consumed  in  operation  unless  such  discounts  are  applied  to  the  particu- 
lar bills. 

E-76.  Extraordinary  Repairs  : 

Charge  to  this  account  and  concurrently  credit  to  account,  “Reserve 
for  Extraordinary  Repairs,”  the  estimated  monthly  provision  for 
extraordinary  repairs  necessitated  by  sleet  storms,  fire,  flood,  etc. 

E-77.  Repairs  Charged  to  Reserves — Cr.  : 

Credit  to  this  account  and  charge  concurrently  to  the  account, 
“Reserve  for  Accrued  Depreciation,”  an  amount  equal  to  the  cost  of 
extraordinary  repairs  for  which  provision  has  been  made  in  that 
reserve;  also  credit  to  this  account  and  charge  concurrently  to  the 
insurers  or  to  the  insurance  reserve  an  amount  equal  to  the  cost  of 
repairs  made  necessary  by  casualties  when  such  cost  is  covered  by  insur- 
ance or  an  insurance  reserve.  All  such  repairs  should  be  charged  in  the 
first  instance  to  the  proper  repair  accounts. 

Other  Expenses. 

E-78.  Residual  Expense: 

Charge  to  this  account  all  expense  specially  incurred  in  connection 
with  the  utilization  and  sale  of  residuals  and  by-products,  such  as  coke, 
tar,  ammonia,  carbon  and  other  residuals  and  by-products;  separate 
sub-account  must  be  kept  for  each  commodity. 

E-79.  Steam  Sales  Expense  : 

This  account  should  be  charged  with  (account  Taxes  Accrued  being 
credited)  regular  monthly  installments  sufficient  to  cover  all  taxes 
imposed  by  lawful  authority. 

Taxes. 

E-80.  Taxes: 

This  account  should  be  charged  with  (account  Taxes  Accrued  being 
credited)  regular  monthly  installments  sufficient  to  cover  all  taxes 
imposed  by  lawful  authority. 

A.  Upon  property  real,  personal  and  mixed  (except  assessments 
for  betterment  to  real  estate,  which  should  be  charged  to  account 
benefited). 

B.  Upon  earnings  in  addition  to  or  in  lieu  of  taxes  upon 
property. 

C.  All  specific  licenses  or  charges  levied  upon  the  corporation 
based  upon  or  with  respect  to  its  capital  stock,  property  or  business. 


CLASSIFICATION"  OF  ACCOUNTS,  GAS  CORPORATION’S. 


53 


D.  The  value  of  all  discounts  allowed  or  services  rendered  in 
lieu  of  taxes. 

Note. — The  amount  of  taxes  accrued  during  any  month  shall,  when  the  levy  is 
unknown,  be  estimated,  and  when  the  levy  is  Anally  determined  the  estimate  shall  be 
corrected  in  the  provision  for  taxes  during  the  remainder  of  the  year.  For  example, 
if  at  the  beginning  of  the  tax  year  the  taxes  against  the  corporation  are  estimated 
to  be  $600  for  the  year,  the  estimated  monthly  charge  will  be  $50.  If  during  the 
Afth  month  it  is  found  that  the  levy  is  $640,  adjustment  should  be  made  and  a charge 
of  $55  per  month  made  to  Taxes  for  the  remaining  eight  months  of  the  tax  year. 

General  Amortization  of  Capital. 

E-81.  Amortization  of  Franchises  and  Patents  : 

Charge  to  this  account  each  month  the  amount  necessary  to  cover 
.such  portions  of  the  life  of  franchises  and  patents  as  has  expired  or 
been  consumed  during  the  month.  The  amount  so  charged  shall  be 
concurrently  credited  to  an  appropriate  sub-account  under  Account  No. 
30,  ‘ ‘ Reserve  for  Amortization  of  Intangible  Capital. ’ ’ 

Note. — The  amount  charged  to  this  account  shall  be  based  upon  a rule  determined 
by  the  accounting  corporation  and  Aled  with  the  Railroad  Commission.  The  purpose 
and  effect  of  such  rule  should  be  to  accumulate  by  charges  equitably  distributed 
throughout  the  life  of  any  franchise  or  patent,  a reserve  that  will,  at  the  expiration 
of  its  life,  equal  the  original  cost. 

E-82.  Depreciation  of  Plant  and  Equipment  : 

Charge  to  this  account  monthly  the  amount  estimated  to  be  necessary 
to  cover  the  depreciation  accruing  during  the  month  in  the  corporation ’s 
tangible  capital.  The  amount  charged  to  this  account  shall  be  concur- 
rently credited  to  account,  “Reserve  for  Accrued  Depreciation.” 

Note. — Charges  to  the  above  depreciation  account  should  be  reported  separately 
under  the  following  subheads : 

A.  Depreciation  of  Production  Capital. 

B.  Depreciation  of  Transmission  Capital. 

C.  Depreciation  of  Distribution  Capital. 

D.  Depreciation  of  General  Capital. 


CLEARING  ACCOUNTS. 

(Not  required  of  Class  B and  Class  C Corporations.) 

The  following  accounts  are  provided  for  certain  expenses  which 
usually  affect  several  classes  of  operations  but  need  to  be  brought 
together  in  one  account  in  order  that  the  total  of  the  expenses  may  be 
known  and  property  distributed. 

An  inventory  of  tools,  harness,  vehicles,  and  other  materials  and 
supplies  in  shops,  stores,  stables,  and  garages  shall  be  taken  at  least 
once  a year,  and  any  loss  disclosed  by  such  inventory  in  excess  of  the 
amount  taken  into  account  through  the  depreciation  currently  charged 
out  should  be  apportioned  to  the  appropriate  expense  accounts  on  the 
basis  of  charges  made  since  last  inventory. 

1.  Shop  Expense.  This  account  or  appropriate  sub-accounts  should 
be  arranged  so  as  to  record  separately  the  expenses  of  the  general  shops 
as  follows:  (1)  Salary  and  wages  of  shop  employees ; (2)  personal  and 
incidental  expenses  of  such  employees;  (3)  materials  and  supplies  for 


54  CLASSIFICATION  OF  ACCOUNTS,  GAS  COEPOBATIONS. 

general  shop  use;  (4)  repairs  of  tools,  machinery  and  appliances; 

(5)  rent  of  shop  buildings;  (6)  depreciation  of  tools,  machinery,  and 
appliances. 

The  shop  expense  account  should  be  cleared  by  apportioning  the 
total  amount  of  the  expenses  to  the  various  jobs  on  an  equitable  basis. 

2.  Stable  and  Garage  Expense.  This  account  or  appropriate  sub- 
accounts should  be  arranged  so  as  to  record  separately  the  expenses  of 
stables  and  garages  as  follows:  (1)  Salaries  and  wages  of  drivers, 
chauffeurs,  stablemen,  garagemen,  and  other  employees  in  stables  and 
garages;  (2)  personal  and  incidental  expenses  of  such  employees; 
(3)  materials  and  supplies,  including  fuel  and  gasoline,  harness,  tires, 
and  other  supplies  for  stables  and  garages;  (4)  repairs  of  automobiles 
and  other  vehicles  and  harness;  (5)  rent  of  buildings  or  vehicles; 

(6)  depreciation  on  vehicles,  horses,  harness,  etc. 

Credit  to  this  account  any  charges  for  services  performed  for  others. 

A record  should  be  kept  of  the  use  of  teams  and  automobiles,  and 
each  month  the  total  expense  should  be  apportioned  to  the  proper 
accounts  according  to  use,  or  the  debits  to  the  expense  accounts  may  be 
made  at  rates  per  hour  of  service  which  have  been  found  to  be  fair  and 
to  distribute  the  total  expense  equitably. 

3.  Tool  Expense.  Charge  to  this  account  all  expense  for  tools  (except 
shop  tools  carried  as  supplies  unissued).  It  includes  the  cost  of  small 
hand  tools  of  which  no  account  is  kept  after  issue ; the  cost  of  repairing 
tools ; the  cost  of  tools  lost  or  stolen,  and  depreciation  on  tools  taken  out 
of  service  because  of  breakage  or  other  deterioration. 

This  account  should  be  cleared  by  adding  to  the  expense  of  repairs 
and  cost  of  plant  installed  each  month  such  amounts  as  will  equitably 
distribute  the  total  monthly  expense  for  tools. 

4.  Supply  Expense.  Charge  to  this  account  or  to  appropriate  sub- 
accounts all  expenses  (except  insurance  and  taxes)  incurred  directly 
in  connection  with  the  purchase,  storage,  handling,  and  distribution  of 
materials  and  supplies  and  stationery.  It  includes  the  pay  and  expenses 
of  purchasing  agents,  managers  of  stores,  clerks,  and  laborers ; rents  of 
stores,  cost  of  lighting,  heating,  and  undistributed  freight  and  express 
charges,  and  the  estimated  depreciation  on  supplies  due  to  breakage, 
leakage,  shortage,  and  wear  and  tear.  This  account  should  be  cleared 
by  adding  to  the  cost  of  materials  and  supplies  passing  through  stores 
a suitable  loading  charge  which  will  equitably  distribute  the  total 
cost  of  conducting  the  stores,  and  by  adding  to  the  cost  of  such  supplies 
as  are  bought  by  the  purchasing  department  pro  rata  share  of  the  total 
expenses  of  the  purchasing  department. 

5.  Engineering  Expense.  Charge  to  this  account  or  appropriate  sub- 
accounts all  expenses  for  engineering  so  as  to  show  separately  the 


CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 


55 


following:  (1)  Salaries  and  wages;  (2)  personal  and  incidental  ex- 
penses of  engineering  department  employees;  (3)  rent  of  office  and 
office  expenses. 

This  account  should  be  cleared  by  apportioning  the  total  expenses  to 
Operating  Expenses  and  Fixed  Capital  accounts  on  the  basis  of  service 
rendered,  as  determined  by  the  actual  time  devoted  to  particular  jobs 
or  on  an  equitable  basis  fixed  by  the  officers  of  the  corporation. 

6.  Plant  Supervision  Expense.  Charge  to  this  account  the  cost  of 
general  supervision  of  the  maintenance  and  construction  of  the  plant 
where  a separate  department  of  the  corporation’s  organization  is 
charged  with  such  supervision.  It  includes  the  pay  and  expenses  of 
the  plant  supervising  officers,  such  as  the  general  plant  superintendent, 
district  plant  superintendent,  plant  engineers  and  their  office  and  field 
forces,  charged  with  planning  for  and  superintending  the  work  of 
maintenance  and  plant  construction. 

The  account  or  appropriate  sub-accounts  should  be  so  arranged  as  to 
show  in  detail  the  expenses  of  the  plant  supervision  department  as 
follows:  (1)  Salaries  and  wages;  (2)  personal  and  incidental  expenses 
of  employees;  (3)  rent  of  office  and  office  expenses. 

This  account  should  be  cleared  each  month  by  charging  directly  to 
the  appropriate  accounts  such  expenses  as  can  be  allocated  to  particular 
pieces  of  work  and  by  charging  out  the  balance  on  the  basis  of  labor 
employed  in  all  construction  or  maintenance  work  in  progress  during 
the  month. 

Note. — The  pay  of  general  foreman  and  foremen  in  direct  charge  of  jobs  should 
be  included  in  the  cost  of  the -job  and  not  charged  to  this  account. 

Every  gas  corporation  shall  include  in  its  expense  depreciation 
charges  for  the  purpose  of  creating  proper  and  adequate  reserves  to 
cover  the  expenses  of  depreciation  currently  accruing  in  its  fixed 
capital,  and  for  that  purpose  three  accounts  are  provided  for  the 
expense  of  depreciation  as  above : Account  E-82,  “Depreciation  of  Plant 
and  Equipment”;  Account  E-76,  “Extraordinary  Repairs”;  Account 
E-81,  “Amortization  of  Franchises  and  Patents.” 

By  “Expense  of  Depreciation”  is  meant  the  loss  suffered  through 
the  current  lessening  in  value  of  tangible  property  from  wear  and 
tear,  decay,  obsolescence,  or  inadequacy  resulting  from  use,  age,  physical 
change  or  supersession  by  reason  of  new  inventions  and  discoveries, 
changes  in  popular  demand,  or  public  requirements ; also  losses  suffered 
through  destruction  of  property  by  extraordinary  casualties  and  de- 
creases in  the  value  of  intangible  property  through  lapse  of  time. 

The  amount  charged  as  expense  of  depreciation  shall  be  based  upon 
values  determined  by  the  accounting  corporation.  Such  rules  may  be 
devised  from  a consideration  of  the  corporation’s  history  and  experi- 


56  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

ence.  Whatever  may  be  the  basis,  the  rules  and  a sworn  statement  of 
the  facts  and  expert  opinions  and  estimates  upon  which  they  are  based 
shall  be  filed  with  the  Railroad  Commission.  Each  amendment  of  any 
rule,  together  with  statements  and  opinions,  shall  also  be  filed  with  the 
Railroad  Commission  before  they  are  put  into  effect  by  the  accounting 
corporation,  and  shall  show  the  date  when  they  are  to  become  effective. 


GAS  CORPORATIONS 


LIST  Of  ACCOUNTS.  BALANCE  SHEET  ACCOUNTS. 

ASSET  ACCOUNTS. 

x Page. 

1.  Fixed  Capital  Installed  Prior  to  January  1,  1913 6 

2.  Fixed  Capital  Installed  Since  December  31,  1912 7 

3.  Cash  and  Deposits 7 

A.  Cash 7 

B.  Special  Deposits 7 

4.  Notes  Receivable 7 

5.  Accounts  Receivable . 7 

A.  Accounts  with  System  Corporations 7 

B.  Due  from  Consumers  and  Agents 8 

C.  Miscellaneous  Accounts  Receivable ■ 8 

6.  Interest  and  Dividends  Receivable 8 

7.  Other  Current  Assets 8 

8.  Investments  8 

A.  Securities  of  Other  Corporations 8 

B.  Advances  to  System  Corporations  for  Construction,  Equipment  and 

Betterments 9 

C.  Miscellaneous  Investments 9 

9.  Materials  and  Supplies 9 

10.  Sinking  Funds 10 

11.  Other  Special  Funds 10 

12.  Treasury  Securities 10 

13.  Prepaid  Expenses 10 

A.  Prepaid  Rents 10 

B.  Prepaid  Taxes 10 

C.  Prepaid  Insurance 11 

D.  Other  Prepayments 11 

14.  Unamortized  Discount  on  Securities  and  Expenses 11 

15.  Other  Suspense 11 

16.  Construction  Work  in  Progress 12 

17.  Corporate  Deficit 12 

LIABILITY  ACCOUNTS. 

18.  Capital  Stock 12 

19.  Installments  on  Stock  Subscription 12 

20.  Funded  Debt : 12 

21.  Receivers’  Certificates 13 

22.  Advances  from  System  Corporations  for  Construction,  Equipment  and 

Betterments  13 

23.  Notes  Payable 13 

24.  Accounts  Payable 13 

A.  Accounts  with  System  Corporations 13 

B.  Audited  Vouchers  and  Wages  Unpaid 13 

C.  Consumers’  Deposits 14 

D.  Miscellaneous  Accounts  Payable 14 

25.  Interest  Accrued 14 

26.  Taxes  Accrued 14 

27.  Dividends  Declared 14 

28.  Service  Billed  in  Advance 14 


58 


CLASSIFICATION-  OF  ACCOUNTS,  GAS  CORPORATIONS. 


A A\J  ill  • 

29.  Reserve  for  Accrued  Depreciation 15 

30.  Reserve  for  Amortization  of  Intangible  Capital 15 

31.  Unamortized  Premium  on  Debt 15 

32.  Casualty  and  Insurance  Reserves 16 

33.  Income  Invested  Since  December  31,  1912 — In  Fixed  Capital 16 

34.  Reserves  Invested  in  Sinking  Funds ; 17 

35.  Other  Reserves  from  Income  or  Surplus 17 

36.  Corporate  Surplus  Unappropriated 17 

FIXED  CAPITAL  ACCOUNTS. 

Intangible  Capital. 

C-  1.  Organization  17 

C-  2.  Franchise  (Gas)  18 

C-  3.  Patent  Rights  (Gas) 18 

O 4.  Other  Intangible  Capital 19 

TANGIBLE  CAPITAL. 

Landed  Capital. 

C—  5.  Land  Devoted  to  Gas  Operations 19 

Production  Capital. 

O 6.  Gas  Wells  and  Derrick 20 

C-  7.  Gas  Plant  Buildings  and  General  Structures 20 

C-  8.  Holders  20 

C-  9.  Furnaces,  Boilers  and  Accessories : 20 

C — 10.  Gas  Generators 20 

C— 11.  Purification  Apparatus 21 

C-12.  Steam  Engines 21 

0-13.  Gas  Engines 21 

C-14.  Miscellaneous  Gas  Plant  Equipment 21 

C-15.  Water  Gas  Sets  and  Accessories 21 

C— 16.  Accessory  Equipment  at  Works 21 

C-17.  Miscellaneous  Production  Equipment 22 

Transmission  Capital. 

C-18.  Transmission  Mains 22 

C-19.  Transmission  Buildings  and  General  Structures 22 

C— 20.  Boosting  Apparatus  and  Regulators 22 

C-21.  Miscellaneous  Transmission  Equipment 22 

Distribution  Capital. 

022.  Distribution  Mains 23 

023.  Gas  Services 23 

024.  Gas  Meters - 23 

025.  Gas  Regulators _ 23 

026.  Municipal  Street  Lighting  Fixtures  (Gas) 23 

027.  Gas  Engines  and  Appliances 24 

028.  Commercial  Arc  Lamps-. 24 

029.  Installations  on  Consumers’  Premises 24 

030.  Miscellaneous  Distribution  Equipment 24 

General  Capital. 

031.  General  Structures — 24 

032.  General  Equipment 25 

A.  General  Office  Equipment 25 

B.  General  Shop  Equipment 25 

C.  General  Store  Equipment 25 

D.  General  Stable  and  Garage  Equipment 26 

E.  Miscellaneous  Equipment 26 

C— 33.  Telephone  Lines 26 


INDEX. 


59 


Page. 

C-34.  Roads,  Trestles  and  Bridges 26 

C-35.  Undistributed  Construction  Expenditures 26 

A.  Engineering  and  Superintendence 26 

B.  Law  Expenditures  During  Construction 26 

C.  Injuries  During  Construction 27 

D.  Taxes,  During  Construction 27 

E.  Miscellaneous  Construction  Expenses 27 

C-36.  Interest  During  Construction 27 

C-37.  Cost  of  Plant  Purchased  in  Lieu  of  Plant  Constructed 28 

C— 38.  Fixed  Capital  in  Other  Departments 28 

C-39.  Fixed  Capital  Installed  Prior  to  January  1,  1913 1 28 

C-40.  Fixed  Capital  Installed  Since  December  31,  1912 29 

INCOME  ACCOUNT. 

101.  Operating  Revenues 29 

102.  Operating  Expenses 29 

103.  Uncollectible  Gas  Bills 29 

104.  Non-operating  Revenues 29 

A.  Rent  Accrued  from  Lease  of  Gas  Plant 29 

B.  Miscellaneous  Rent  Revenues 30 

C.  Interest  and  Dividend  Revenues 30 

D.  Sinking  and  Other  Reserve  Accretions 30 

E.  Profits  from  Operations  of  Others 30 

F.  Miscellaneous  Non-operating  Revenues 30 

105.  Non-operating  Revenue  Deductions - 30 

A.  Rent  Expenses 30 

B.  Interest  Expense 31 

C.  Dividend  Expenses 31 

D.  Others’  Operations  Expense 31 

E.  Miscellaneous  Non-operating  Expense 31 

F.  Non-operating  Taxes 31 

G.  Uncollectible  Non-operating  Revenues 31 

106.  Interest  Accrued  on  Funded  Debt 31 

107.  Other  Interest  Deductions 32 

108.  Rent  Deductions 32 

A.  Rent  for  Lease  of  Other  Gas  Plant 32 

B.  Miscellaneous  Rent  Deductions 32 

109.  Amortization  of  Debt  Discount  and  Expense 32 

110.  Amortization  of  Premium  on  Debt — Cr 32 

111.  Miscellaneous  Deductions  from  Income 32 

A.  Loss  on  Operations  of  Others 32 

B.  Amortization  of  Landed  Capital 33 

C.  Other  Contractual  Deductions  from  Income 33 

CORPORATE  SURPLUS  OR  DEFICIT  ACCOUNT. 

112.  Dividends  on  Outstanding  Stock 33 

113.  Sinking  Fund  Appropriations 34 

114.  Miscellaneous  Deductions  from  Surplus 34 

A.  Expenses  Unprovided  for  Elsewhere 34 

B.  Realized  Depreciation  »not  Covered  by  Reserves 34 

C.  Amortization  Unprovided  for  Elsewhere . 34 

D.  Gifts  to  Controlled  Corporations 35 

E.  Appropriations  to  Reserves 35 

F.  Other  Appropriations  from  Surplus 35 

G.  Other  Deductions  from  Surplus 35 

115.  Miscellaneous  Additions  to  Surplus 35 


60  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

OPERATING  REVENUES— GAS. 

Page. 

R-  1.  Municipal  Street  Lighting — Arc 36 

R-  2.  Municipal  Heat,  Power  and  Lighting 36 

R-  3.  Commercial  Heat,  Power  and  Lighting — Flat  Rate 36 

R-  4.  Commercial  Heat,  Power  and  Lighting — Metered 36 

R-  5.  Prepaid  Gas : 36 

R-  6.  Other  Gas  Corporations : 36 

R-  7.  Commissions  on  Others’  Gas 36 

R-  8.  Rent  of  Meters 37 

R-  9.  Breakdown  Service 37 

R-10.  Joint  Gas  Rent  Revenue : 37 

R-ll.  Other  Miscellaneous  Gas  Revenues . 37 

OTHER  OPERATING  REVENUES. 

R-12.  Rent  of  Gas  Appliances 37 

R-13.  Gas  Merchandise  and  Jobbing  Revenue 38 

R-14.  Sale  of  Residuals  and  By-products 38 

R-15.  Steam  Sales  Revenue 38 

OPERATING  EXPENSE  ACCOUNTS. 

Production  Expenses. 

Class  A. 

E-  1.  Superintendence 39 

E-  2.  Natural  Gas  Plant  Labor 39 

E-  3.  Natural  Gas  Plant  Supplies  and  Expenses 39 

E-  4.  Steam  Plant  Labor 39 

E-  5.  Steam  Plant  Supplies  and  Expenses 39 

E-  6.  Generating  Plant  Labor 39 

E-  7.  Generating  Plant  Supplies  and  Expenses 40 

E-  8.  Fuel  for  Steam 40 

E-  9.  Oil  or  Coal  for  Gas : 40 

E-10.  Miscellaneous  Labor  at  Works 40 

E-ll.  Miscellaneous  Supplies  and  Expenses  at  Works 40 

E-12.  Gas  from  Other  Sources 40 

E-13.  Repairs  to  Gas  Wells  and  Derricks 40 

E-14.  Repairs  to  Gas  Plant  Buildings  and  General  Structures 40 

E-15.  Repairs  to  Gas  Holders , : 41 

E-16.  Repairs  to  Furnaces,  Boilers  and  Accessories 41 

E-17.  Repairs  to  Gas  Generators 41 

E-18.  Repairs  to  Purification  Apparatus 41 

E— 19.  Repairs  to  Gas  Plant  Equipment 41 

E-20.  Repairs  to  Gas  Engines 41 

E-21.  Repairs  to  Miscellaneous  Gas  Plant  Equipment 42 

E-22.  Repairs  to  Water  Gas  Sets  and  Accessories 42 

E-23.  Repairs  to  Accessory  Equipment  at  Works 42 

E-24.  Repairs  to  Miscellaneous  Production  Equipment-1 42 

Class  B. 

E-  1.  Superintendence 39 

E-  2 and  3.  Natural  Gas  Plant  Labor  and  Supplies 39 

E-  4 and  5.  Steam  Plant  Labor  and  Supplies 39 

E-  6 and  7.  Gas  Generation  Labor  and  Supplies 39,  40 

E-  8.  Fuel  for  Steam 40 

E-  9.  Oil  or  Coal  for  Gas ' — 40 

E-10  and  11.  Miscellaneous  Labor  and  Supplies 40 

E-12.  Gas  from  Other  Sources 40 


INDEX. 


61 


PAGE. 

E-13.  Repairs  to  Gas  Wells  and  Derricks 40 

E-14  and  15.  Repairs  to  Structures  and  Holders 40,  41 

E-16.  Repairs  to  Furnaces,  Boilers  and  Accessories 41 

E-17  to  22.  Repairs  to  Gas  Plant  Equipment 41,42 

E-23  and  24.  Repairs  to  Miscellaneous  Production  Equipment — 42 

Class  C. 

E-  1 to  24.  Production  Expenses  and  Repairs  to  Capital 39,  40,  41, 42 

Transmission  Expenses. 

Class  A. 

E-25.  Transmission  Pumping 42 

E-26.  Patrolling  and  Inspecting 43 

E-27.  General  Labor  and  Supplies 43 

E-28.  Repairs  to  Transmission  Mains 43 

E-29.  Repairs  to  Buildings  and  General  Structures 43 

E-30.  Repairs  to  Boosting  Apparatus  and  Regulators 43 

E-31.  Repairs  to  Miscellaneous  Transmission  Equipment 43 

Class  B. 

E-25.  Transmission  Pumping 42 

E-26  and  27.  General  Labor  and  Supplies 43 

E-28  and  29.  Repairs  to  Mains  and  Structures 43 

E-30  and  31.  Repairs  to  Transmission  Equipment 43 

Class  C. 

E-25  to  31.  Transmission  Expenses  and  Repairs  to  Capital 42,  43 

Distribution  Expenses. 

Class  A. 

E-32.  Superintendence 43 

E-33.  Setting  and  Removing  Meters  and  Regulators 44 

E-34.  Inspecting  and  Patrolling 44 

E-35.  Gas  Meter  Operations 44 

E-36.  Commercial  Arc  Labor 44 

E-37.  Commercial  Arc  Supplies  and  Repairs 44 

E-38.  Commercial  Lamp  Installations  and  Renewals 44 

E-39.  Inspection  and  Repairs  to  Consumers’  Installations 44 

E-40.  Municipal  Street  Arc  Labor 45 

E-41.  Municipal  Street  Arc  Supplies 45 

E-42.  General  Labor  and  Supplies 45 

E-43.  Repairs  to  Distribution  Mains 45 

E-44.  Repairs  to  Gas  Services. 45 

E-45.  Repairs  to  Gas  Meters  and  Regulators 45 

E-46.  Repairs  to  Municipal  Street  Lighting  System 46 

E-47.  Repairs  to  Commercial  Arc  Lamps 46 

E-48.  Repairs  to  Miscellaneous  Distribution  Equipment 46 

Class  B. 

E-32.  Superintendence 43 

E-33.  Setting  and  Removing  Meters  and  Regulators 44 

E-34.  Inspecting  and  Patrolling 44 

E-35.  Gas  Meter  Operations : : 44 

E-36  to  38.  Commercial  Lamp  Labor  and  Supplies 44 

E-39.  Inspection  and  Repairs  to  Consumers’  Installations 44 

E-40  and  41.  Municipal  Street  Lamp  Labor  and  Supplies 45 

E-42.  General  Labor  and  Supplies 45 

E-43  and  44.  Repairs  to  Mains  and  Services : 45 

E-45.  Repairs  to  Gas  Meters  and  Regulators : 45 

E-46.  Repairs  to  Municipal  Street  Lighting  System : 46 


62  CLASSIFICATION  OF  ACCOUNTS,  GAS  CORPORATIONS. 

E— 47.  Repairs  to  Commercial  Arc  Lamps ^4^5 

E-48.  Repairs  to  Miscellaneous  Distribution  Equipment 46 

Class  C. 

E-32  to  48.  Distribution  Expenses  and  Repairs  to  Capital 43,  44,  45,  46 

Commercial  Expenses. 

Class  A. 

E-49.  New  Business  Expenses 46 

E-50.  Free  Installation  Expenses 46 

E-51.  Commercial  Department  Salaries  and  Expenses 46 

E-52.  Commercial  Department  Indexing 47 

E-53.  Commercial  Department  Collections 47 

E-54.  Miscellaneous  Commercial  Expenses 47 

Class  B. 

E-49  and  50.  Promotion 46 

E-51  to  54.  Commercial  Department  Supplies  and  Expenses 46,  47 

Class  C. 

E-49  to  54.  Commercial  Department  Labor,  Supplies  and  Expenses 46,47 

General  and  Miscellaneous  Expenses. 

Class  A. 

E-55.  Salaries  of  General  Officers 47 

E-56.  Salaries  of  General  Office  Clerks 47 

E-57.  General  Office  Supplies  and  Incidental  Expenses 47 

E-58.  Law  Expenses — General  48 

E-59.  Railroad  Commission  Expenses ' 48 

E-60.  Injuries  and  Damages 48 

E-61.  Relief  Department  and  Expenses 49 

E-62.  Gas  Franchise  Requirements 49 

E-63.  Other  General  Expenses 49 

E-64.  Insurance  49 

E-65.  Repairs  to  General  Structures 49 

E— 66.  Repairs  to  General  Equipment — Office  Equipment 50 

E— 67.  Repairs  to  General  Equipment — Shop  Equipment 50 

E-68.  Repairs  to  General  Equipment — Store  Equipment 50 

E-69.  Repairs  to  General  Equipment — Stable  and  Garage  Equipment 50 

E-70.  Repairs  to  General  Equipment — Miscellaneous 51 

E-71.  Repairs  to  Telephone  Lines • 51 

E-72.  Repairs  to  Roads,  Trestles  and  Bridges ^ 51 

E-73.  Gas  Expenses  Transferred — Cr , . 51 

E-74.  Joint  Operating  Expenses — Cr 51 

E-75.  Undistributed  Adjustments — Balance 51 

E-76.  Extraordinary  Repairs 52 

E-77.  Repairs  Charged  to  Reserves — Cr 52 

Class  B. 

E-55  to  57.  Salaries  and  Expenses  of  General  Officers 47 

E-58.  Law  Expenses — General 48 

E-59.  Railroad  Commission  Expenses 48 

E-60.  Injuries  and  Damages 48 

E-61.  Relief  Department  and  Expenses 49 

E-62.  Gas  Franchise  Requirements 49 

E-63.  Other  General  Expenses * 49 

E-64.  Insurance 49 

E-65  to  72.  Repairs  to  Miscellaneous  Equipment 49,  50,  51 

E-73.  Gas  Expenses  Transferred — Cr 51 

E-74.  Joint  Operating  Expenses — Cr 51 

E-75.  Undistributed  Adjustments — Balance 51 


INDEX. 


63 


Page. 

E-76.  Extraordinary  Repairs 52 

E-77.  Repairs  Charged  to  Reserves — Cr 52 

Class  C. 

E-55  to  57.  Salaries  and  Expenses  of  General  Officers 47 

E-58  to  64.  Miscellaneous  General  Expenses 48,  49 


E-65  to  77.  Miscellaneous  General  Expenses,  Repairs  and  Adjustments_49,  50,  51,  52 


Other  Operating  Expenses. 

Class  A. 

E-78.  Residual  Expense 52 

E-79.  Steam  Sales  Expense 52 

Class  B. 

E-78  and  79.  Other  Expenses 52 

Class  C. 

E-78  and  79.  Other  Expenses 52 

Taxes. 

Class  A. 

E-80.  Taxes  52 

Class  B. 

E-80.  Taxes 52 

Class  C. 

E-80.  Taxes 52 

General  Amortization  of  Capital. 

Class  A. 

E-81.  Amortization  of  Franchises  and  Patents 53 

E-82.  Depreciation  of  Plant  and  Equipment — 53 

Class  B. 

E-81.  Amortization  of  Franchise  and  Patents 53 

E-82.  Depreciation  of  Plant  and  Equipment 53 

Class  C. 

E-81  and  82.  Depreciation,  etc.  53 


CLEARING  ACCOUNTS. 

1.  Shop  Expense. 

2.  Stable  and  Garage  Expenses. 

3.  Tool  Expense. 

4.  Supply  Expense. 

5.  Engineering  Expense. 

6.  Plant  Supervision  Expense. 


